Stocks succumb to selling pressure

KSE-100 index loses 265.57 points, settles at 65,151.83

KARACHI:

Pakistan Stock Exchange (PSX) on Friday experienced yet another bearish session where the KSE-100 index extended losses by more than 250 points.

In the morning, trading began in a positive mood as the index reached its intra-day high of 65,534.02 points. However, the market came under selling pressure in the second half, though Pakistan had clinched a staff-level agreement with the International Monetary Fund under its $3 billion standby arrangement and was going to hold talks for a larger loan programme.

Investors weighed reports saying that the apex committee of the Special Investment Facilitation Council (SIFC) had reiterated to continue with its tough economic measures as well as news of a potential increase in gas and petroleum prices.

“Stocks closed lower on investor concerns over the SIFC apex body’s decision on tough economic measures for structural reforms and the impact of the IMF’s condition of an 18% sales tax on petroleum sales,” said Ahsan Mehanti, MD of Arif Habib Corp.

“US concerns over poll irregularities, likely surge in industrial power tariffs and increase in government’s treasury bond yields played the role of catalysts in bearish close at the PSX.”

At close, the benchmark KSE-100 index recorded a decrease of 265.57 points, or 0.41%, and settled at 65,151.83.

Topline Securities, in its report, said that a range-bound session was observed as the index traded between the intra-day high of 167 points and intra-day low of 361 points. It finally closed at 65,152, down 0.41%.

Traded volumes and value for the day stood at 208 million shares and Rs7.1 billion respectively, it added.

Arif Habib Limited (AHL), in its review, wrote that with 0.5% week-on-week gains, the KSE-100 index traded above 66k during the week, but it was pulled down from that level.

On Friday, 33 stocks rose while 59 declined on the index with National Bank of Pakistan (+7.5%), Pakistan Services (+3.24%) and Meezan Bank (+0.41%) being the biggest contributors to the gains, it said.

Secure Logistics Group sought to raise a total
of Rs1.19 billion including Rs600 million through book building and Rs585 million from investors in pre-initial public offering (IPO).

AHL was the manager
to the offer with floor price of Rs12 per share. Pre-IPO investors included Saudi Bugshan and Karandaaz Pakistan.

“For the coming week, downside pressure can remain in force within the 64-66k range, however, we continue to anticipate an eventual upside breach through all-time highs,” the AHL report added.

JS Global analyst Mubashir Anis Naviwala observed that profit-taking dominated the market, leading the KSE-100 index to shed 266 points and close at 65,152.

“We anticipate range-bound activity to continue and recommend investors to view any downside as an opportunity to invest in banking and fertiliser sectors,” the analyst added.

Overall trading volumes decreased to 208.4 million shares against Thursday’s tally of 389.7 million. The value of shares traded during the day was Rs7.1 billion.

Shares of 332 companies were traded. Of these, 120 stocks closed higher, 185 dropped and 27 remained unchanged.

Pakistan Reinsurance Company was the volume leader with trading in 24.2 million shares, gaining Rs1 to close at Rs13.08. It was followed by Pakistan International Airlines with 16.5 million shares, losing Rs2.07 to close at Rs25.54. It was followed by Pakistan Telecommunication Company with 10.9 million shares, losing Rs1.19 to close at Rs14.65.

Foreign investors were net buyers of shares worth Rs421.5 million, according to the NCCPL.

Published in The Express Tribune, March 23^rd, 2024.

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