Stocks down 1,634 points amid worries over foreign debt repayment

KARACHI: Stocks witnessed a sharp decline on Thursday. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index plunged by 1,634 points, as investors worried about foreign debt repayment issues. The political and economic uncertainty remained visible resulting in institutional selling.

The KSE-100 index plunged by 1,634.22 points, or 1.46 per cent, to 110,301.16 points, down from the 111,935.38 points recorded in the last session. The highest index of the day remained at 112,234.15 points, while the lowest level was recorded at 109,405.54 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed sharply lower amid worries over prospects of foreign debt repayments and EU review on GSP status.” He said that dismal data on fertiliser sales in January 2025, the outcome of the suspension of USAID and prospects of CPEC projects played a catalyst role in the bearish activity.

The KSE-30 index decreased by 638.01 points or 1.82 per cent to 34,386.65 points against 35,024.66 points. Traded shares increased by 162 million shares to 598.93 million shares from 436.325 million shares. The trading value rose to Rs25.629 billion from Rs23.225 billion. Market capital lowered to Rs13.654 trillion against Rs13.827 trillion. Of the 435 companies active in the session, 101 closed in green, 286 in red and 48 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the KSE-100 index endured a turbulent session, plunging to an intraday low of 2,529 points before closing at 110,301, reflecting a sharp decline of 1,634 points (-1.46 per cent).

“The persistent negative sentiment can be attributed to continuous institutional selling over the past week, which has severely dented investor confidence,” he said. The drop was largely driven by ENGOH, FFC, MARI, SYS and PPL, which together contributed 675 points to the loss.

The highest increase was recorded in Nestle Pakistan Limited, which rose by Rs51.11 to Rs7,440.36 per share, followed by Haleon Pakistan Limited, which increased by Rs30.39 to Rs847.78 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs83.7 to Rs22,315.5 per share; Sazgar Engineering Works Limited followed it, which closed lower by Rs46.6 to Rs1,094.36 per share.

Analyst Muhammad Hasan Ather at JS Global said the KSE-100 Index experienced significant selling pressure. “The downturn was driven by profit-taking from institutions, political uncertainty, and concerns about meeting IMF targets,” he said.

“Looking ahead,” he said. “The market is expected to remain range-bound, with the upcoming IMF talks serving as a pivotal factor for future direction.” Silk Bank Ltd remained the volume leader with 119.523 million shares, which closed higher by 16 paisas to Rs1.19 per share. WorldCall Telecom, with 80.384 million shares, followed it, which closed lower by 6 paisas to Rs1.52 per share.

Other significant turnover stocks included Bank Makramah, BO Punjab, TRG Pak Ltd, National BankXD, Fauji Foods Ltd, The Searle Company, and Citi Pharma Ltd. In the futures market, 323 companies recorded trading, 66 of which increased, 253 decreased and 4 remained unchanged.