KARACHI:
The Pakistan Stock Exchange (PSX) witnessed significant volatility on Thursday, with the KSE-100 index dropping nearly 1,500 points, primarily due to extensive profit-taking. The index fluctuated throughout the day, reaching a high of 114,329.95 points, but a sharp sell-off in the final hours pulled it down to a low of 112,594.66 points.
The market saw widespread declines across major sectors, including automobile manufacturers, cement, commercial banks, oil and gas exploration companies, and power generation firms. These declines reflected a broader market retreat.
Ahsan Mehanti, MD of Arif Habib Corp, attributed the market pressure to concerns over the outcome of government-PTI talks, a tax amendment that bars non-filing PSX investors, and political uncertainty. These factors, along with concerns over cautious monetary policy easing and potential IMF tax slippage, contributed to bearish market activity.
At the close of trading, the KSE-100 index posted a notable loss of 1,510.19 points, or 1.32%, settling at 112,638.26 points.
Topline Securities reported that the market experienced significant volatility, with the index hitting a peak of 114,330 and a low of 112,595. Engro Holdings, Mari Petroleum, Meezan Bank, Lucky Cement, and Engro Fertilisers were key contributors to the drop, accounting for a loss of 615 points.
Arif Habib Limited (AHL) noted that the KSE-100 index remained within the 111,000-118,000 range, while some stocks, like JDW Sugar Mills, Habib Bank Limited, and Pakgen Power, contributed to gains. Conversely, Engro Holdings, Mari Petroleum, and Meezan Bank saw the most significant losses.
Cement dispatches for December 2024 increased by 2% year-on-year to 4.2 million tons, compared to 4.1 million tons in the same month of the previous year.
AHL highlighted a key resistance level for January at 115,000-115,500 points, noting that the KSE-100 was down 4.2% week-on-week as the week approached its close.
JS Global analyst Muhammad Hasan Ather observed that the day’s drop of 1.3% was driven by political uncertainty and profit-taking by institutional investors. Structural challenges, including new tax amendments barring non-filers from market participation, added to the downturn.
Insight Securities’ Ali Najib noted that the market had experienced a fourth consecutive negative session, driven by investor sentiment erosion and continuous foreign selling.
Overall, trading volumes decreased to 695.1 million shares, down from 1.1 billion on Wednesday. Of the 454 companies traded, 89 saw gains, 321 declined, and 44 remained unchanged.
WorldCall Telecom was the volume leader, with 195.3 million shares traded, closing unchanged at Rs1.79. K-Electric followed with 48.7 million shares, losing Rs0.1 to close at Rs4.76, while Cnergyico PK saw 35.5 million shares traded, losing Rs0.31 to end at Rs6.69.
