PSX: KSE-100 Index closes down 0.26% amid profit-taking, corporate earnings concerns

PKR remains relatively stable, inching down against USD in the interbank market to close at Rs277.66

The Pakistan Stock Exchange (PSX) experienced a volatile session on Monday, with the benchmark KSE-100 Index opening strong, gaining over 600 points during intraday trading, before late-session selling wiped out the gains, pushing the index into negative territory. 

By the close, the KSE-100 Index settled at 85,261.39 points, down 222.02 points or 0.26%.

According to a post-market report by Topline Securities, the KSE-100 opened on a positive trajectory, reaching a peak of 621 points. However, investor profit-taking soon kicked in, reversing the momentum and causing the index to dip by 327 points at its lowest intraday level.

The decline was primarily attributed to a downward revision in earnings for Hub Power Company (HUBC), which fell by 9.15% following the early termination of a key contract. 

Additionally, Engro Fertilizers Limited (EFERT) saw a 4.1% drop after reporting disappointing third-quarter results, posting an EPS of Rs13.47 and a dividend of Rs2.50 per share, which missed market expectations.

Key contributors to the index’s decline included HUBC, EFERT, Oil and Gas Development Company (OGDC), Bank Al Habib (BAHL), and Engro Corporation (ENGRO), collectively pulling the index down by 532 points. 

On the other hand, positive movement from companies like Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), Attock Refinery (ATRL), and International Steels Limited (ISL) added 326 points, according to Topline.

In a separate report, Ismail Iqbal Securities highlighted the volatility during Monday's session, noting that Hubco’s stock faced significant selling pressure due to the confirmed early termination of its power purchase agreement for the base plant.

Friday’s trading session saw the KSE-100 end nearly flat, with the index oscillating between gains and losses as concerns over the early termination of independent power producers' (IPPs) contracts weighed on investor sentiment.

In corporate news, Siemens (Pakistan) Engineering Co. Ltd. (SIEM) announced that its Board of Directors had approved the sale of its energy portfolio to Siemens Gamesa Renewable Energy (Private) Limited for Rs17.82 billion (~$64 million), as per a notice to the PSX on Monday.

Pakistan Petroleum Limited (PPL) also shared updates on its hydrocarbon production, announcing that a new development well, Adhi South-9, located in Punjab’s Pothwar region, had commenced production.

Meanwhile, EFERT, a subsidiary of Engro Corporation, reported a profit after tax of Rs8.55 billion for the third quarter ending September 30, 2024, reflecting an 11% decline from the Rs9.58 billion posted in the same period last year, according to its consolidated financial results shared with the PSX.

Meanwhile, the Pakistani rupee remained relatively stable, inching down by 0.01% against the US dollar in the interbank market, closing at Rs277.66, a marginal loss of Re0.02.