PSX ends flat amid budget uncertainty

KSE-100 index inches down 3.04 points, settles at 72,761.20

KARACHI:

Uncertainty loomed over the Pakistan Stock Exchange (PSX) on Tuesday as investors grappled with pre-budget concerns and reports about the International Monetary Fund (IMF) seeking an additional Rs1.3 trillion in taxes under a new loan programme.

In the morning, trading began with a sharp dip as the KSE-100 index dived to around 72,700 points. However, it managed to rebound quickly and wipe out all the initial losses.

The market saw rapid fluctuations in the index throughout the day, during which it surpassed the 73,000 barrier after midday. The bourse touched the intra-day high at 73,260.08 points.

However, it could not sustain the momentum and faced profit-taking pressure, which erased all the prior gains and took the market to the intra-day low at 72,707.95 points towards the close of trading.

The slump was primarily driven by political noise, ambiguity surrounding the terms of the potential IMF bailout package and the currency instability.

Notably, despite the turmoil, fertiliser, power, pharmaceutical and cable sectors performed well. Eventually, the bourse closed the day on a flat note below the 73,000 mark.

“Stocks closed flat amid higher trading on pre-budget uncertainty after reports saying that the IMF had demanded Rs1.3 trillion in additional taxes under a new bailout package,” said Ahsan Mehanti, MD of Arif Habib Corp.

“Political noise, uncertainty over terms of the new IMF bailout and rupee instability played the role of catalysts in negative close at the PSX.”

At close, the benchmark KSE-100 index recorded a slight decline of 3.04 points and settled at 72,761.20.

Topline Securities, in its report, wrote that Pakistan equities had a mixed day on Tuesday. “Continuing the previous day’s buoyant mood, the day commenced on a positive note and the KSE-100 index hit the intra-day high of 73,260 (up 496 points; or 0.68%),” it said.

“At that level, profit-taking was seen, which forced the index to shed earlier gains and ultimately settle on a flat note at 72,761 (down 3 points).”

Earlier, the market touched the intra-day low at 72,708 (down 56 points; or 0.08%).

Fertiliser, power, pharma and cable sectors contributed positively to the index where Dawood Hercules Corp, Hub Power, Kot Addu Power Company, Highnoon Laboratories and Pak Elektron added 286 points.

On the flip side, Pakistan Petroleum, Engro Fertilisers and Oil and Gas Development Company cumulatively lost 158 points due to profit-taking in their shares, Topline added.

Overall trading volumes increased to 621.8 million shares against Monday’s tally of 578.4 million. The value of shares traded during the day was Rs24.97 billion.

Shares of 377 companies were traded. Of these, 200 stocks closed higher, 154 dropped and 23 remained unchanged.

Pak Elektron was the volume leader with trading in 64.15 million shares, gaining Rs1.77 to close at Rs26.90. It was followed by Fauji Foods with 40.1 million shares, gaining Rs0.3 to close at Rs10.10 and WorldCall Telecom with 29.97 million shares, gaining Rs0.02 to close at Rs1.28.

Foreign investors were net buyers of shares worth Rs154.7 million, according to the National Clearing Company of Pakistan Limited (NCCPL).

Published in The Express Tribune, May 8^th, 2024.

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