PSX dips below 64,000

KSE-100 index falls 531.91 points, settles at 63,737.46

KARACHI:

Continuing its descend, the Pakistan Stock Exchange (PSX) moved further south on Tuesday as investors weighed the slim large-scale manufacturing (LSM) growth of 1.59% year-on-year (YoY) , weakening rupee and political uncertainty.

In the morning, the day began with robust trading when the index touched its intra-day high at 64,246.67 points. However, owing to profit-taking and reports saying that the delisting committee had set Pak Suzuki Motor Company’s (PSMC) share price way below expectations at Rs609, the market fell rapidly. As a result, the index dipped below the 64,000 mark, hitting the intra-day low at 63,397.94 before midday. The downturn was also influenced by geopolitical uncertainty and apprehensions surrounding the energy sector’s circular debt that surpassed Rs5.73 trillion.

“Stocks closed bearish as investors weighed the modest LSM growth of 1.59% YoY in November 2023, weak rupee and political noise,” said Arif Habib Corp MD Ahsan Mehanti.

“Speculation in the auto sector amid lower-than-expected minimum share buyback price for PSMC, geopolitical uncertainty and concerns over power and gas sector’s circular debt reaching Rs5.73 trillion played the role of catalysts in bearish close of the market.” At close, the KSE-100 index recorded a decrease of 531.91 points, or 0.83%, and settled at 63,737.46.

Topline Securities, in its report, commented that profit-taking dominated Tuesday’s trading activities. “Negativity loomed when the delisting committee set PSMC’s price at Rs609/share, dashing market expectations of a significantly higher valuation,” it said.

Read PSX opens week on bearish note

Profit-booking marked trading in the E&P sector, leading PPL (-4.14%) and OGDC (-2.97%) to close in the red, Topline added.

Overall trading volumes increased to 407.5 million shares against Monday’s tally of 382.01 million. The value of shares traded during the day was Rs12.6 billion.

Shares of 338 companies were traded. Of these, 92 stocks closed higher, 219 dropped and 27 remained unchanged.

K-Electric was the volume leader with trading in 50.8 million shares, losing Rs0.06 to close at Rs5.79. It was followed by Pakistan Telecommunication Company with 48.6 million shares, gaining Rs1 to close at Rs13.57 and WorldCall Telecom with 32.1 million shares, losing Rs0.02 to close at Rs1.36. Foreign investors were net buyers of shares worth Rs56.7 million.

Published in The Express Tribune, January 17^th, 2024.

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