Stocks slide amid economic worries

KSE-100 index dips 76.85 points, settles at 77,114.49

KARACHI:

Pakistan Stock Exchange (PSX) slightly dipped by nearly 80 points in a range-bound session on Wednesday in the backdrop of economic and political uncertainty in the country, which made investors jittery.

Taking cue from Tuesday's gains, the KSE-100 index began the day on a robust note and climbed to the intra-day high of 77,800.04 points in early hours. However, the optimism proved short-lived as bearish sentiment prevailed, driven by concerns over the depreciating rupee and delay in the privatisation of state-owned enterprises (SOEs).

Additionally, worries over the unsettled $15 billion debt of the Chinese independent power producers (IPPs) and the shrinking banking spread contributed to the downward trajectory.

Notably, investors exercised caution with frequent shifts between stocks across various sectors, including power, energy, fertiliser, automotive, technology and cement.

As a result, the market fell to the intra-day low of 77,086.81 points and closed near the day's low.

"Stocks closed lower on economic uncertainty," stated Ahsan Mehanti, MD of Arif Habib Corp. "Falling rupee, delay in the privatisation of SOEs, concerns over the $15 billion unsettled Chinese IPPs' debt and shrinking banking spread played the role of catalysts in bearish close at the PSX."

At the end of trading, the benchmark KSE-100 index registered losses of 76.85 points, or 0.1%, and settled at 77,114.49.

Topline Securities, in its report, commented, "Pakistan equities moved in both directions as bullish and bearish forces confronted each other throughout the session to take the helm at the PSX. However, bears emerged as winners with the KSE-100 index closing the day at 77,114."

Investors chose to switch between selective stocks of power, energy, fertiliser, auto, tech and cement sectors. Resultantly, Bank AL Habib, Engro Fertilisers, Fauji Fertiliser, United Bank and Pakistan Petroleum lost 263 points.

On the flip side, Pakistan Oilfields, Habib Bank and Engro Corporation added 121 points as they witnessed a rejuvenated buying interest," Topline added.

Arif Habib Limited (AHL), in its report, said that the market failed "to regain 78,000 with the day's high at 77,800 for the KSE-100."

Some 53 stocks rose while 47 fell with Pakistan Oilfields (+3.15%), Habib Bank (+1.22%) and Engro Corp (+0.68%) contributing the most to the index gains. Bank AL Habib (-3.1%), Engro Fertilisers (-2.39%) and United Bank (-0.76%) were the biggest drags, it said.

Refineries saw renewed momentum which included National Refinery (+4.86%) and Pakistan Refinery (+4.31%) alongside tech company Octopus Digital (+10%), AHL added.

Overall trading volumes decreased to 447.5 million shares compared with Tuesday's tally of 600.9 million. The value of shares traded during the day was Rs18.4 billion.

Shares of 440 companies were traded. Of these, 231 stocks closed higher, 160 fell and 49 remained unchanged.

Kohinoor Spinning Mills was the volume leader with trading in 70.04 million shares, losing Rs0.26 to close at Rs5.84. It was followed by Power Cement with 28.8 million shares, gaining Rs0.08 to close at Rs4.98 and Pakistan International Bulk Terminal with 20.9 million shares, losing Rs0.25 to close at Rs5.36.

Foreign investors were net buyers of shares worth Rs34.3 million, according to the NCCPL.