KARACHI:
Pakistan’s stock market on Friday ended its six-day rally with a drop of over 300 points as the KSE-100 index came under pressure following government’s decision to raise profit rates on National Saving Schemes (NSS) in line with the status quo maintained by the monetary policy committee (MPC).
A weakening rupee, economic uncertainty and a 1.8% contraction in large-scale manufacturing (LSM) for the first seven months of FY25 weighed on investor sentiment. Concerns over pending approval of the International Monetary Fund (IMF) for relief in industrial power tariffs further contributed to the bearish close.
Despite hitting the intra-day high of 119,406 early in the day, profit-taking led to a pullback, with major drags being Fauji Fertiliser Company, Hubco and Lucky Cement.
At the end of trading, the benchmark KSE-100 index registered a decline of 327.60 points, or 0.28%, and settled at 118,442.18.
“Stocks closed under pressure after the government raised profit rates on NSS in line with the MPC decision to keep status quo on the key policy rate,” said Arif Habib Corp MD Ahsan Mehanti.
Weak rupee, economic uncertainty amid 1.8% LSM contraction for 7MFY25 and concerns over the pending IMF approval for relief in industrial power tariffs played the role of catalysts in bearish close at the Pakistan Stock Exchange (PSX), he added.
“The KSE-100 index marked its sixth consecutive week of gains, reaching new all-time highs,” said Arif Habib Limited (AHL) in its report.
On Friday, 42 stocks advanced while 56 declined. Key contributors to the index gains included Systems Limited (+2.34%), Nishat Mills (+10%) and Interloop Limited (+6.87%). Conversely, Fauji Fertiliser Company (-1.09%), Hubco (-1.5%) and Lucky Cement (-1.4%) were the biggest drags, it said. “Despite some profit-taking, the overall outlook remains positive, with higher levels anticipated,” AHL added.
Topline Securities, in its market review, wrote that range-bound activity was observed as the index traded between the intra-day high of +636 points and intra-day low of -435 points. It closed at 118,442, down 0.28%.
The top positive contribution to the index came from Systems Limited, Nishat Mills, Interloop, Millat Tractors and Sui Northern Gas Pipelines Limited (SNGPL) as they contributed 222 points. On the other hand, Fauji Fertiliser Company, Hubco, Lucky Cement, Mari Petroleum and UBL dragged the index down by 344 points, it said.
Traded value-wise, Mari Petroleum (Rs2.57 billion), PSO (Rs2.01 billion), SNGPL (Rs936 million), OGDC (Rs726 million) and Attock Refinery (Rs631 million) dominated the trading activity, Topline added.
Muhammad Hasan Ather of JS Global said profit-taking continued across the board as the KSE-100 index closed at 118,442, down 328 points. The market opened in the green zone, touching the intra-day high of 119,406.
“Moving forward, we advise investors to avail of any downside as an opportunity to buy in energy sectors,” he said.
Overall market activity decreased with a turnover of 369.1 million shares, significantly lower than the previous day’s 667.9 million. The total traded value stood at Rs23.3 billion. Out of the 435 companies traded, 193 closed higher, 190 fell and 52 remained unchanged.
Cnergyico PK was the volume leader with trading in 49.1 million shares, losing Rs0.23 to close at Rs7.98. It was followed by Pakistan Refinery with 27.4 million shares, losing Rs0.99 to close at Rs38.14 and Fauji Foods with 26.4 million shares, gaining Rs0.44 to close at Rs16.61. During the day, foreign investors sold shares worth Rs22 million, according to the NCCPL.
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