Stocks down 938 points as investors book profits

KARACHI: The Pakistan Stock Exchange (PSX) closed the week on a negative note. The benchmark KSE-100 Index decreased by 938 points as investors booked profits amid shrinking large-scale manufacturing.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100 Index decreased by 938.23 points, or 0.82 per cent, to 112,800.93 points, down from the 113,739.16 points recorded in the last session. The highest index of the day remained at 114,444.01 points, while the lowest level was recorded at 112,813.87 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed bearish as dismal data showed large-scale manufacturing (LSM) shrinking by 3.73 per cent year-on-year (YoY0 in December 2024, raising concerns over economic growth. Investor sentiment was further dampened by fears of continued foreign outflows from PSX.

He said weak global crude oil prices, uncertainty surrounding the outcome of tax reforms ahead of the upcoming IMF review for the next tranche under the Extended Fund Facility (EFF), and a weakening rupee played a key role in the bearish close.

The KSE-30 index decreased by 291.24 points or 0.82 per cent to 35,036.32 points against 35,327.55 points. Traded shares decreased by 332 million shares to 455.394 million shares from 787.438 million shares. The trading value dropped to Rs21.524 billion from Rs33.097 billion. Market capital narrowed to Rs13.958 trillion against Rs14.028 trillion. Of 451 companies active in the session, 173 closed in green, 219 in red, and 59 remained unchanged.

An analyst at Topline Securities said the market opened on a positive note led by LUCK, as the company through a notice to exchange, announced a stock split, where shareholders will get 5 shares for every 1 share held. However, profit-taking was observed in the second half of the trading session, as investors came in to book their profit over the weekend.

Top positive contributions to the index came from LUCK, KTML, SCBPL, TRG and TGL, as they cumulatively contributed over 162 points to the index. On the other hand, CHCC, MCB, ABOT, HBL and PPL lost value to weigh down on the index by over 300 points.

Traded value wise, LUCK (Rs3.12 billion), DGKC (Rs899 million), FFC (Rs855 million), FCCL (Rs773 million) and PAEL (Rs767 million) dominated the trading activity.

The highest increase was recorded in Nestle Pakistan Limited, which rose by Rs48.71 to Rs7,345.84 per share, followed by Supernet Technologies Limited, which increased by Rs43.75 to Rs839.36 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs215 to Rs22,900 per share. It was followed by Rafhan Maize Products Company Limited, which closed lower by Rs147.67 to Rs9,394.33 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index is currently trading within the 112.5k-113k support range, which is expected to hold. Looking ahead, a break below 112k could signal further downside, while a push above 115k would indicate continued bullish momentum in the coming week.

Pak Int Bulk remained the volume leader with 35.412 million shares, which closed higher by 2 paisas to Rs8.71 per share. K-Electric Ltd, with 24.737 million shares, followed it, closing lower by 4 paisas to Rs4.67 per share.

Other significant turnover stocks included Ghani Global Glass, Pak Elektron, Fauji Cement, Fauji Foods Ltd, At-Tahur Ltd., B.O. Punjab, WorldCall Telecom and Big Bird Foods Ltd. In the Future Market, 320 companies recorded trading, 94 of which increased, 222 decreased and 4 remained unchanged.