Stocks decline 360 points on profit-taking, economic concerns

KARACHI: The Pakistan Stock Exchange (PSX) fell for the second consecutive session on Thursday as profit-taking triggered bearish sentiment, with investors opting to book gains amid concerns over proposed tax amendments and foreign debt payments.

The benchmark KSE-100 index declined by 361 points, or 0.32 per cent, to close at 112,564 points, following range-bound trading. The index swung between an intraday high of 113,477.71 points and a low of 112,540.12 points before settling lower.

Stocks closed under pressure due to foreign outflows and uncertainty surrounding the proposed Tax Amendment Bill 2024, which limits non-filers from investing in the PSX, said Ahsan Mehanti, an analyst at Arif Habib Corp. He added that concerns over foreign debt repayments, the European Union’s review of Pakistan’s GSP+ status, the suspension of USAID, and political uncertainty also contributed to the market’s negative close.

Investor sentiment remained mixed, according to Topline Securities’ post-trading note. On the corporate earnings front, Meezan Bank Limited posted results in line with market expectations, while Pakistan State Oil (PSO) earnings fell slightly short due to weaker-than-expected gross margins.

The market found some upward momentum from LUCK, MCB, BAFL, NBP, and MEBL, which collectively added 184 points to the index. However, PPL, ENGRO, and PSO dragged the index down by 254 points.

Market activity remained strong, with 596 million shares traded, generating a turnover of Rs 30 billion. Bank of Punjab (BOP) led the volume charts with 79 million shares traded. Of the 100 index-listed companies, 35 advanced, 61 declined, and 4 remained unchanged.

The top losing stocks of the day were SHEL, which fell 3.41 per cent, HGFA, which dropped 3.35 per cent, PGLC, which lost 3.16 per cent, PABC, which declined 3.11 per cent, and PSO, which shed 2.95 per cent. The top gainers included PSEL, which rose 6.72 per cent, AGP, which gained 3.27 per cent, PKGS, which increased 3.22 per cent, NRL, which climbed 3.03 per cent, and LUCK, which advanced 2.82 per cent.

In terms of index contribution, the biggest draggers were PPL, which pulled the index down by 106.24 points, ENGRO, which subtracted 74.54 points, PSO, which reduced the index by 73.29 points, UBL, which cut 65.91 points, and OGDC, which dropped 56 points. On the other hand, LUCK added 97.33 points, PSEL contributed 51.16 points, MCB boosted the index by 30.88 points, BAFL increased it by 19.84 points, and NBP lifted it by 18.71 points.

The oil and gas exploration sector weighed heaviest on the index, losing 176.34 points, followed by oil and gas marketing, which declined by 92.23 points, investment banks and securities, which dropped 76.73 points, technology and communication, which fell 50.77 points, and power generation and distribution, which lost 22.69 points. in contrast, miscellaneous gained 41.06 points, cement rose by 36.97 points, refinery added 25.60 points, paper and packaging increased by 14.28 points, and pharmaceuticals gained 7.61 points.

Trading activity in the KSE-All Share Index saw a slight decline, with 597 million shares traded, down from 670 million in the previous session. BOP remained the most active stock, closely followed by LOTCHEM.