KSE-100 loses 755 points amid fears of US-China trade war

KARACHI: The Pakistan Stock Exchange (PSX) lost its two-day winning streak and closed lower on Wednesday amid fears over the outcome of the US-China trade tariffs.

The benchmark KSE-100 index decreased by 755.4 points, or 0.65 per cent, to 116,020.11 points, down from the 116,775.5 points recorded in the last session. The highest index of the day remained at 117,424.04 points, while the lowest level was recorded at 115,776.12 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks closed sharply lower in the earnings season amid 3.5 per cent shrinking LSM growth in February and investor fears over the outcome of the US-China trade tariffs.”

He said that rupee instability and dismal data on cement sales for March played a catalyst role in the bearish closure at the PSX.The KSE-30 index decreased by 242.79 points or 0.68 per cent to 35,606.48 points from 35,849.26 points.

Traded shares increased by two million shares to 481.813 million shares from 479.465 million shares. The trading value rose to Rs38.536 billion from Rs30.449 billion. Market capital narrowed to Rs14.193 trillion against Rs14.29 trillion. Of the 451 companies active in the session, 140 closed in green, 260 in red and 51 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the local bourse witnessed a mix of optimism and caution among investors. The market opened on a strong footing, gaining as much as 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage. The index slipped to an intraday low of 999 points, eventually closing at 116,020, down by 755 points or 0.65 per cent.

“The volatility, throughout the day, can largely be attributed to the ongoing trade tensions between the US and China, which have reignited concerns over global economic stability and impacted investor sentiment,” he said.

The market’s gains were primarily driven by strong performances from UBL, EFERT, MCB, LUCK, and CHCC, which collectively contributed 201 points to the index. On the flip side, major laggards included MARI, ENGROH, PPL, PSO, and BAHL, which together wiped out 441 points from the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs273.35 to Rs22,967.97 per share, followed by PIA Holding Company Limited B, which increased by Rs148.85 to Rs1,753.61 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs45.05 to Rs3,194.95 per share; Philip Morris (Pakistan) Limited followed it, which closed lower by Rs43.60 to Rs1,132.27 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the KSE-100 index snapped the two-day winning streak to close lower at the end. Stocks carried momentum in early trade, however, late selling wiped out the gains, eventually dragging the market into the red, mainly led by large-cap E&Ps. “Investors are advised to stay bullish while keeping a close eye on corporate earnings for key opportunities,” he suggested.

Cnergyico PK remained the volume leader with 35.607 million shares, which closed lower by 2 paisas to Rs8.51 per share. BO Punjab, with 25.483 million shares, followed it, which closed lower by 6 paisas to Rs11.11 per share.

Other significant turnover stocks included Fauji Foods Ltd, PSO, K-Electric Ltd, Citi Pharma Ltd, Pak Refinery, Sui South Gas, TPL Properties and At-Tahur Ltd. In the futures market, 322 companies recorded trading, 57 of which increased, 261 decreased, and 4 remained unchanged.