PSX sheds over 900 points on profit-taking

Pakistan Stock Exchange (PSX) on Friday endured a volatile trading session, where the KSE-100 index closed 0.82% lower at 112,801 points, as profit-taking in cement and banking stocks erased earlier gains.

Lucky Cement emerged as a key driver of market sentiment after announcing a five-for-one stock split, subject to shareholder approval. The stock, along with Standard Chartered Bank and TRG Pakistan, contributed positively to the index, while Cherat Cement, MCB Bank and Abbott Laboratories weighed it down.

Market participants also remained cautious ahead of the upcoming International Monetary Fund (IMF) mission that would discuss a $1 billion climate financing package for Pakistan.

"Stocks closed bearish amid dismal data of large-scale manufacturing (LSM) that shrank 3.73% year-on-year (YoY) in December 2024 and concerns over foreign outflows at the PSX," said Ahsan Mehanti of Arif Habib Corp.

Weak global crude oil prices, uncertainty about the outcome of tax reforms ahead of IMF review for the release of next loan tranche and weak rupee played the role of catalysts in bearish close of the market, he said.

At the end of trading, the benchmark KSE-100 index registered a sharp decline of 938.23 points, or 0.82%, and settled at 112,800.93.

Arif Habib Limited (AHL) reported that Friday's decline trimmed week-on-week gains to 0.64%, with profit-taking in the cement sector weighing on the index.

Some 26 shares advanced, while 67 declined, where the biggest contributors to index gains were Lucky Cement (+1.91%), Standard Chartered Bank (+7.53%) and TRG Pakistan (+2.74%). Conversely, Cherat Cement (-7.45%), MCB Bank (-2.17%) and Abbott Laboratories (-7.21%) were the biggest drags, it said.

Lucky Cement announced a five-for-one stock split in a notice sent to the PSX. It followed the company board's recommendation on February 20 and was subject to shareholder approval at an extraordinary general meeting scheduled for March 18. Upon approval, the company's outstanding shares would increase from 293 million to 1,465 million, AHL mentioned.

Topline Securities' market review said traded volume and value for the day stood at 455 million shares and Rs21.5 billion ($77 million), respectively.

Following companies declared their December quarter results on Friday: Tariq Glass posted 2QFY25 earnings per share (EPS) of Rs9.06 (up 123% quarter-on-quarter – QoQ, down 20.4% YoY), accompanied by an interim cash dividend of Rs2 per share. Its stock closed 3.86% higher than the previous day's close.

Cherat Cement declared 2QFY25 EPS of Rs11.69 (down 21% QoQ, up 22% YoY) and an interim dividend of Rs1.5 per share. Banking company Standard Chartered declared 4QCY24 EPS of Rs6.72 (up 6.7% QoQ and 21% YoY), accompanied by a final cash dividend of Rs5.5 per share, which took CY24 payout to Rs9 per share, Topline said.

Muhammad Hasan Ather of JS Global said KSE-100 witnessed a range-bound session and the benchmark index declined 0.8% to 112,801 by the close of trading. The decline was driven by selling pressure in key sectors such as cement and commercial banks.

Index-heavy stocks like MCB Bank, Fauji Fertiliser Company, Oil and Gas Development Company, UBL, Mari Petroleum, Engro Fertilisers and Hubco traded in the red, he said.

Overall trading volumes were recorded at 455.4 million shares, compared with the previous session's tally of 787.4 million. Total traded value for the day stood at Rs21.5 billion, lower than the previous session's Rs33.1 billion.

Shares of 451 companies were traded. Of these, 173 stocks closed higher, 219 declined and 59 remained unchanged.

Pakistan International Bulk Terminal led the volume chart with 35.4 million shares, gaining Rs0.02 to close at Rs8.71. It was followed by K-Electric with trading in 24.7 million shares, losing Rs0.04 to close at Rs4.67 and Ghani Global Glass with 19.8 million shares, gaining Rs0.48 to close at Rs9.15.

During the day, foreign investors bought shares worth Rs124 million, according to the NCCPL.