Stocks dip over persistent profit-booking

Pakistan's stock market extended losses on Friday as investors opted to book profits in the wake of corporate result announcements and ahead of futures contract rollover. Stock selling by mutual funds also played its part in the decline of the market, which lost nearly 1,300 points.

Initially, optimism was observed as the benchmark KSE-100 index got off to a positive start, hitting the intra-day high of 165,026 very early. However, it soon took a steep dive, after which it touched the intra-day low of 163,042. Despite that, the index recovered significant ground by midday break.

Afterwards, the bourse rose close to the day's high and then again went down to close the session with a notable drop. At close, the KSE-100 index showed a dip of 1,286.28 points, or 0.78%, to settle at 163,304.13.

Topline Securities, in its review, remarked that the market extended its losses as the KSE-100 index declined 0.78%. "This negativity can be attributed to late selling by mutual funds, profit-taking on result announcements for the September quarter and the upcoming futures rollover week," it said.

The top negative contribution to the index came from the banking sector as UBL, Bank AL Habib, Meezan Bank, HBL, The Bank of Punjab (BOP), Askari Bank and Bank Alfalah cumulatively wiped off 877 points. This pressure in the banking sector could be linked to result announcements by different banks, which were lower than market expectations due to higher operating expenses, it said.

Among major financial results, Meezan Bank posted unconsolidated 3QCY25 earnings per share (EPS) of Rs11.7, down 7.4% quarter-on-quarter (QoQ) and 13% year-on-year (YoY). It declared an interim cash dividend of Rs7 per share. In the pharmaceutical sector, The Searle Company in its 1QFY26 results declared unconsolidated EPS of Rs1.67, up 184% YoY, Topline mentioned.

Arif Habib Limited (AHL) reported that three consecutive close in the red took week-on-week index movement to -0.3% and below 164k.

On Friday, 27 shares rose while 71 fell with Engro Holdings (+3.69%), Sui Northern Gas Pipelines (+3.76%) and Pakistan Tobacco (+4.03%) contributing the most to index gains. On the flip side, UBL (-1.63%), Bank AL Habib (-3.24%) and Meezan Bank (-2.12%) were the biggest index drags.

Meezan Bank reported 9MCY25 EPS of Rs38.59, down 11% YoY, and a dividend per share of Rs21. Earnings weakened due to a decline in net profit earned and elevated operational expenses, partially offset by support from non-funded income, AHL said.

At the monetary policy committee meeting on Monday, "we expect the rate to be held at 11% mainly due to the recent rise in inflation, a marginal widening of current account deficit and the early stage of domestic recovery," it added.

Overall trading volume decreased to 1.04 billion shares compared with Thursday's tally of 1.50 billion. Total traded value stood at Rs35 billion.

Shares of 478 companies were traded. Of these, 136 closed higher, 300 fell and 42 remained unchanged.

K-Electric was the volume leader with trading in 194.9 million shares, falling 46 paisa to close at Rs5.62. It was followed by WorldCall Telecom with 97.6 million shares, losing 13 paisa to close at Rs1.96 and First Capital Securities with 78.1 million shares, edging down three paisa to close at Rs9. Foreign investors sold shares worth Rs993 million, according to NCCPL.