KSE-100 down 342 points amid concerns over foreign outflows

KARACHI: The Pakistan Stock Exchange (PSX) extended its losing streak for the fourth consecutive session on Monday, bringing the benchmark KSE-100 index down to a key support level of around 112,000 points. Investors remained cautious amid ongoing market volatility and concerns over foreign outflows.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index decreased by 341.76 points, or 0.3 per cent, to 111,743.53 points, up from the 112,085.3 points recorded in the last session. The highest index of the day remained at 112,524.81 points, while the lowest level was recorded at 111,513.67 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed lower amid consolidation in the earning season and investor concerns for foreign outflows, [and the] outcome of tax reforms ahead of the IMF review to release the next tranche under the extended fund facility (EFF)”.

He also said that rupee instability, falling foreign exchange reserves and geo-political uncertainty played a catalyst role in the bearish close. The KSE-30 index dropped by 139.28 points or 0.4 per cent to 34,806.59 points against 34,945.87 points.

Traded shares increased by 54 million shares to 511.194 million shares from 457.049 million shares. The trading value dropped to Rs19.635 billion from Rs23.215 billion. Market capital narrowed to Rs13.787 trillion against Rs13.851 trillion. Of the 435 companies active in the session, 130 closed in the green, 235 in the red, and 70 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the local bourse experienced a volatile session, oscillating between gains and losses. The index reached an intraday high of 439 points before plunging to a low of 571 points, ultimately closing at 111,743, down 341 points (0.3 per cent). “Initial optimism faded as the lack of positive triggers dampened investor sentiment, triggering a sell-off in the latter half of the session,” he said. “With no major catalysts to sustain momentum, the market drifted into negative territory by the close.”

The upward movement was primarily driven by LUCK, BAHL, BOP, UBL, and FATIMA, collectively contributing 296 points to the index. Conversely, MARI, PPL, TRG, SEARL, and OGDC dragged the index down by 301 points.

The highest increase was recorded in Service Industries Limited, which rose by Rs48.94 to Rs1,400 per share, followed by Sapphire Textile Mills Limited, which increased by Rs43 to Rs1,243 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs123.09.24 to Rs7,250.3 per share; Rafhan Maize Products Company Limited followed it, closing lower by Rs106.53 to Rs9,389.33 per share.

Market analysts anticipate a potential recovery, with expectations for the KSE-100 to climb back above 113,500 points in the coming sessions, provided investor sentiment improves.

BO Punjab remained the volume leader with 184.433 million shares, which closed higher by Rs1.07 to Rs12.17 per share. Power Cement, with 38.642 million shares, followed it, which closed higher by Rs0.9 to Rs10.76 per share.

Other significant turnover stocks included WorldCall Telecom, Hascol Petrol, K-Electric Ltd, Sui South Gas, Citi Pharma Ltd, Hub Power Co, Cnergyico PK and At-Tahur Ltd. In the futures market, 323 companies recorded trading, 77 of which increased, 243 decreased and 3 remained unchanged.