KSE-100 down 463 points amid profit-taking

KARACHI: The Pakistan Stock Exchange (PSX) started on a positive note on Thursday with reports of power sector circular debt resolution. However, the benchmark KSE-100 index dropped 463 points, as investors followed the global equities’ trend and opted for profit-taking.

The index closed lower by 463.34 points, or 0.38 per cent, to 120,002.59 points, down from 120,465.93 points recorded in the last session. The highest index of the day remained at 121,745.3 points, while the lowest level was recorded at 119,770.03 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed lower on fears over the probable escalation of Middle East tensions.”He said that a weak rupee and a slump in global equities played a catalytic role in panic selling at the PSX.

The KSE-30 index decreased by 64.39 points or 0.18 per cent to 36,441.73 points from 36,506.12 points.

Traded shares dropped by 103 million shares to 604.536 million shares from 707.3 million shares. The trading value decreased to Rs20.442 billion from Rs21.273 billion. Market capital narrowed to Rs14.523 trillion against Rs14.61 trillion. Of the 459 companies active in the session, 155 closed in green, 269 in red and 35 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the local bourse kicked off the trading session on a strong footing, buoyed by news that the federal cabinet has greenlit a financial restructuring plan aimed at slashing Rs1.275 trillion in circular debt within the power sector over the next six years.

Riding on this optimism, the benchmark index surged to an intraday high of 1,279 points. However, the bullish momentum was short-lived, as profit-taking set in later in the session, in line with global market trends.

Rising geopolitical tensions, particularly the intensifying standoff between Iran and Israel, dampened investor sentiment and led to a broad-based pullback, overshadowing the earlier euphoria and highlighting the fragility of market confidence in a volatile global environment, he said.

On the upside, index-heavyweights UBL, BAHL, MCB, and HMB provided some support, jointly contributing 203 points. However, losses in PKGP, EFERT, ENGROH, and LUCK offset those gains, dragging the index down by a combined 270 points.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs140.64 to Rs23,129.64 per share, followed by Macter International Limited, which increased by Rs51.39 to Rs565.29 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs1,377.01 to Rs12,393.14 per share; Hoechst Pakistan Limited followed it, which closed lower by Rs99.24 to Rs3,150.76 per share.

Analyst Mubashir Anis Naviwala at JS Global said the market opened strong with a surge of over 1,200 points but bears quickly took control.

“We advise a defensive strategy, avoiding aggressive exposure in the current climate. Risk management remains key amid heightened market volatility.”

WorldCall Telecom remained the volume leader with 64.601 million shares, which closed lower by one paisa to Rs1.49 per share. Sui South Gas, with 35.626 million shares, followed it, which closed lower by 96 paisas to Rs43.28 per share.

Other significant turnover stocks included Prud Mod 1st, Pervez Ahmed Co, K-Electric Ltd., PIA Holding Company, Invest Bank, TPL Properties, Yousuf Weaving, and Ist Capital Sec. In the futures market, 314 companies recorded trading, 75 of which increased, 232 decreased and 7 remained unchanged.