KARACHI: Despite str­ong anticipation of a sixth straight cut in the interest rate at the monetary policy review meeting later in the evening, the Pakistan Sto­ck Exchange on Monday witnessed a roller-coaster session mainly due to political instability, a hike in gas tariffs and disappointing corporate results.

The Economic Coordina­tion Committee’s decision to increase the gas tariff by almost 17pc for captive po­­wer plants was the key dep­ressant. This move drew a strong reaction from the ex­­­port-oriented players, es­­pecially the textile sector, saying this move would hurt the country’s export competitiveness in the regional and international markets.

Topline Securities Ltd said the market opened positively, with the index making an impressive int­r­a­day high of 716 points. How­­ever, the momentum was short-lived as bears swi­­ftly took charge. The index plunged to an intraday low of 1,398 points bef­ore closing at 113,520, mar­king a decline of 1,360 poi­nts or 1.18pc day-on-day.

“This negative trend can largely be attributed to Mari Energies’ weaker-than-expected financial results, which dampened investor sentiment. The co­­mpany reported earnings per share (EPS) of Rs9.3, with no cash payout, falling below market expectations and contributing significantly to the bearish activity observed during the trading session,” the brokerage house observed.

Pakistan Oilfield decl­a­r­­ed its 2QFY25 result, where the company posted an EPS of Rs26.7, taking 1HFY25 earnings to Rs35.7 per share, down 42pc. However, it announced a cash dividend of Rs25 per share for 1HFY25.

Scrips contributing positively to the index include Systems Ltd, Engro Ferti­liser, Fauji Fertiliser, Pak­istan Oilfield, and Bank Al-Habib, which added 282 points. Conversely, subst­a­n­­tial declines in Mari Ene­rgies, Engro Holdings, PSO, Hub Power, and Pakistan Petroleum Ltd weighed heavily on the market, accounting for a combined loss of 783 points.

Ahsan Mehanti of Arif Habib Corporation said stock turned bearish amid a rout in global equities and weak international crude oil prices.

He added that uncertainty over the outcome of government-PTI talks, an expected cautious SBP policy decision later in the day and worries over proposed Tax Laws Amendment Bill 2024 limiting non-filers from making stock purcha­ses worried investors who resorted to panic selling.

As a result, the trading vol­­­ume plunged 21.38pc to 494.03 million shares while the traded value dipped 31.37pc to Rs25.94bn day-on-day.

Published in Dawn, January 28th, 2025

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Personal priorities
Updated 21 Mar, 2025

Personal priorities

Pet projects launched by govt often found to be poorly conceived, ripe for exploitation, misaligned with country’s overall development priorities.
Inheritance rights
21 Mar, 2025

Inheritance rights

THE Federal Shariat Court’s ruling that it is un-Islamic to deprive a woman of her right to inheritance is a...
Anti-Muslim actions
21 Mar, 2025

Anti-Muslim actions

MUSLIMS in India have endured incessant scrutiny of their nationalism. Prime Minister Narendra Modi’s ...
Victim complex
Updated 20 Mar, 2025

Victim complex

If New Delhi is sincere about bringing peace to South Asia, let it agree to an unconditional dialogue with Islamabad about all irritants.
LSM decline
20 Mar, 2025

LSM decline

THE slump in large-scale manufacturing amidst the adjustments the economy is forced to make in order to stay afloat...
Education interrupted
20 Mar, 2025

Education interrupted

THE sudden closure of major universities in Balochistan, ostensibly due to ‘security concerns’, marks another...