Pakistan Stock Exchange (PSX) on Monday came under extensive selling pressure as the benchmark KSE-100 index plunged to the intra-day low of 111,829 points before closing at 111,987, down 1,265 points.
The sharp decline, occurring near the close of corporate earnings season, was attributed to a weakening economic outlook, foreign investment outflow, a depreciating rupee, declining global crude oil prices and uncertainty surrounding the outcome of talks between Pakistan and the International Monetary Fund (IMF).
Market analysts highlighted that the absence of positive triggers, coupled with disappointing earnings of some key companies, further contributed to the bearish sentiment.
According to Ahsan Mehanti of Arif Habib Corp, stocks fell sharply near the close of earnings season due to a weak economic outlook. He added that foreign outflows, a weak rupee, lower global crude oil prices and uncertainty about the outcome of Pakistan-IMF talks in the current week played the role of catalysts in bearish close at the PSX.
At the end of trading, the benchmark KSE-100 index recorded a decrease of 1,264.78 points, or 1.12%, and settled at 111,986.89. In its market review, Topline Securities commented that the bourse experienced a decline in Monday's trading session, with the index reaching the intra-day low of 111,829 before closing at 111,987, reflecting a loss of 1,265 points.
The negative sentiment was driven by the lack of positive triggers, in addition to lower-than-expected earnings of Engro Holdings, which contributed 424 points to the overall decline. Shorter trading hours also put pressure on the market, it said.
Key stocks contributing to the downturn included Engro Holdings, UBL, MCB Bank, Millat Tractors and Pakistan Petroleum, which together accounted for a drop of 731 points in the index, Topline noted. In its report, Arif Habib Limited (AHL) commented that the week started off poorly, where the KSE-100 index dropped to 112,000 points.
Some 27 shares rose and 67 fell, with Engro Fertilisers (+0.53%), Hub Power (+0.44%) and Packages Limited (+3.76%) contributing the most to index gains. On the flip side, Millar Tractors (-3.1%), Engro Holdings (-6.98%) and UBL (-2.15%) were the biggest drags, AHL said. It added that National Bank of Pakistan (NBP) announced 4QCY24 earnings per share (EPS) of Rs10.6, up 63% year-on-year. It brought CY24 EPS to Rs12.2, down 51% year-on-year, primarily due to a pension liability settlement of Rs49 billion.
NBP resumed dividend payouts after a gap of seven years and announced a final cash dividend of Rs8 per share, its highest-ever annual payout, AHL mentioned.
"Despite five consecutive negative closes, we expect 115,000 to be taken out in the near term," it remarked.
JS Global analyst Muhammad Hasan Ather stated that the KSE-100 index began the week on a negative note, dropping 1,265 points amid thin trading volumes.
Investors exercised caution ahead of the IMF review and with the beginning of Ramazan, contributing to a lower participation. The index reached the intra-day high of 113,592 but retreated to 111,987 at close.
Uncertainty about fiscal targets, monetary policy and IMF negotiations weighed on sentiment. Looking ahead, the market's direction would depend on the IMF review outcome and the State Bank's monetary policy stance, Ather commented.
Overall trading volumes decreased to 208.9 million shares compared with Friday's tally of 472.1 million.
Shares of 438 companies were traded. Of these, 86 stocks closed higher, 287 fell and 65 remained unchanged. The value of shares traded during the day stood at Rs11.9 billion.
National Bank of Pakistan was the volume leader with trading in 23.8 million shares, falling Rs0.91 to close at Rs79.1. It was followed by WorldCall Telecom with 17.6 million shares, remaining unchanged at Rs1.41 and Pakistan International Bulk Terminal with 11.7 million shares, falling Rs0.19 to close at Rs9.41.
During the day, foreign investors sold shares worth Rs55.7 million, the NCCPL reported.
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