KARACHI: After a three-session recovery drive, the stock market on Wednesday faltered due to uncertainty about the chances of a desired outcome of the ongoing dialogue between the government and the PTI, triggering nervous selling. As a result, the market slipped again on a bearish trajectory.
Topline Securities Ltd said the bourse witnessed a consolidation phase characterised by notable volatility. The index reached an intraday high of 969 points and a low of 505 points before closing at 114,945, a decline of 308 points or 0.27 per cent day-on-day. This reflects cautious investor sentiment amidst mixed market signals.
Hub Power drew significant investor interest in the power sector following news of the federal cabinet’s approval of revised agreements with 14 Independent Power Producers (IPPs).
Key gainers included Fauji Fertiliser, Hub Power, Bank Alfalah, GLAXO, and Abbott Laboratories, collectively contributing 339 points to the index. Conversely, losses in Engro Holdings, Mari Petroleum, Service Industries, United Bank, and Systems Ltd, collectively wiped out 514 points.
Ahsan Mehanti of Arif Habib Corporation said the stock market witnessed pressure amid foreign outflows and uncertainty over the outcome of government-PTI talks.
The key factors that led to a bearish activity at the PSX were the expectations of a cautious SBP policy rate cut, rupee instability and uncertainty over the outcome of slippages on IMF tax collection targets.
Ali Najib, Head of Sales at Insight Securities, said the bears dragged the main index into correction territory in the absence of any positive triggers which may anchor market sentiments.
In today’s trading session, fertiliser, exploration and production, leather, banks and tech sector stocks contributed negatively.
However, the trading volume rose 11.86pc to 659.43 million shares while the traded value increased 21.65pc to Rs39.64bn day-on-day.
Stocks contributing significantly to the traded volume included WorldCall Telecom (68.66m shares), Pakistan Refinery (56.85m shares), Cnergyico PK (43.21m shares), TRG Pakistan (29.66m shares) and Hascol Petroleum (23.57m shares).
The shares registering the most significant increases in their share prices in absolute terms were Hoechst Pakistan (Rs120.49), Rafhan Maize (Rs62.94), Abbott Laboratories (Rs47.76), Ismail Industries (Rs45.40) and Pakistan Services (Rs26.10).
The companies registering significant decreases in their share prices in absolute terms were Service Industries (Rs111.56), Philip Morris (Rs56.00), Sapphire Textile (Rs50.00), Indus Motor Company (Rs41.19) and The Premier Sugar (Rs34.90).
Published in Dawn, January 16th, 2025
