PSX endures pressure; index dips 803 points
Pakistan's stock market came under selling pressure on Tuesday as its main index lost over 800 points due to profit-taking by investors and caution ahead of monetary policy announcement next week.
Concern among market players about economic growth outlook and a fall in international crude prices pulled the market down in a volatile trading session.
Though the KSE-100 index started off the day on a positive note, reaching its intra-day high at 116,424.85 points very soon, it dived afterwards and erased all the earlier gains. The index recovered significantly, but after midday it could not sustain the momentum and dipped to the intra-day low of 114,783.72 towards the end of trading.
"Stocks closed under pressure amid consolidation in the earnings season and slump in global crude oil prices," said Ahsan Mehanti of Arif Habib Corp.
"Investor concerns over dismal growth projections, speculation about talks between the government and Pakistan Tehreek-e-Insaf (PTI) and expectations of a cautious policy rate cut by the State Bank on January 27 played the role of catalysts in bearish activity," he said. At the end of trading, the benchmark KSE-100 index registered a decrease of 802.56 points, or 0.69%, and settled at 115,042.25.
Topline Securities, in its review, wrote that Tuesday's trading session resulted in a decline at the Pakistan Stock Exchange (PSX). The index reached the intra-day high of 116,425 points before settling at 115,042, marking a drop of 803 points, or 0.69%, it said.
"Although news surrounding non-filers had an impact, we believe it affects only a small segment of non-filers participating in the stock market," Topline pointed out.
Primary drivers behind the market's fall were Mari Petroleum, Hub Power, Oil and Gas Development Company (OGDC), Lucky Cement and Pakistan State Oil, which contributed to a loss of 543 points, it added.
Arif Habib Limited (AHL) remarked that selling pressure throughout the day dragged the market down, but the index maintained the 115k level. Some 25 shares rose while 73 fell with Fauji Fertiliser Company (+1.11%), Meezan Bank (+2.2%) and Engro Holdings (+1.49%) contributing the most to index gains. On the contrary, Mari Petroleum (-2.99%), Hub Power (-3.01%) and OGDC (-1.94%) were the biggest drags.
Honda Atlas Cars is scheduled to release its 9MMY25 financial results on Wednesday. "We expect the company to post earnings per share of Rs5.9, down 12% year-on-year," AHL said.
"Maintaining 115k at close keeps higher levels in sight for the remainder of the week," it projected.
Commenting on the market's performance, Insight Securities Head of Sales Ali Najib said the PSX had a negative day as the KSE-100 index finished trading at 115,042, translating into a loss of 803 points.
Initially, the day commenced on a positive note as the index touched its intra-day high at 116,425 (+580 points) by penetrating the 116k zone. However, selling headwinds at and above 116k forced it to give up earlier gains, he said.
"Market vibes were suggesting that profit-taking-cum-selling was driven by institutions including pension and mutual funds as they opted to do some restructuring ahead of the upcoming monetary policy meeting," Najib added. Exploration and production, power, cement and oil marketing companies' sectors were the major laggards of the day.
JS Global analyst Muhammad Hasan Ather said the KSE-100 saw significant volatility and registered a fall of 803 points to 115,042.
"The decline was led by profit-taking from investors after the index reached the intra-day high of 116,425," he said, adding that the upcoming monetary policy committee meeting was expected to provide positive momentum if the central bank announced a larger-than-expected rate cut.
Shares of 450 companies were traded. Of these, 135 stocks closed higher, 266 fell and 49 remained unchanged.
Cnergyico PK was the volume leader with trading in 114.03 million shares, up Rs0.40 to close at Rs7.29. It was followed by Bank Makramah with 69.5 million shares, gaining Rs0.13 to close at Rs3.53 and WorldCall Telecom with 64.2 million shares, losing Rs0.09 to close at Rs1.78.
During the day, foreign investors bought shares worth Rs309.4 million, according to the NCCPL.