Bears drag stocks below 112,000 level

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KARACHI: Amid moderate trading volume, the Pakistan Stock Exchange extended its bearish spell to the third straight session amid growing apprehensions about political uncertainty and lack of positive triggers.

Initially, the benchmark KSE 100 index gained 539 points, hitting the day’s high at 112,569.90. However, the market came under selling pressure in the latter half, losing 873 points at 111,157.19 intraday. Ultimately, the index settled at 111,487.36 after shedding 543 points or 0.48pc day-on-day.

Ahsan Mehanti of Arif Habib Corporation said the rupee instability, political noise and uncertainty over the outcome of slippages on IMF tax collection targets were the chief worries that helped bears strengthen their grip on the market.

However, he added that selling pressure in future contracts in the rollover week over the cautious SBP policy rate cut contributed to bearish activity at the PSX.

Topline Securities Ltd attributed the market downturn to a lack of triggers and extensive selling by intuitions amid the ongoing futures rollover week. Fauji Fertiliser Ltd (FFC) declared its 4Q2024 result announcement in which it posted an earnings per share (EPS) of Rs9.94, down by 42pc quarter-on-quarter and rose 90pc year-on-year, taking CY24 EPS to Rs45.49, up by 118pc year-on-year.

This result announcement was accompanied by a final cash dividend of Rs21 per share, taking the payout for CY24 to Rs34.86. Earnings were lower than expected due to an impairment loss of Rs4bn and higher distribution costs.

The top negative contribution to the index came from FFC, Engro Fertiliser, PSO, MCB Bank, Hub Power and Bank Alfalah, as they cumulatively wiped out 508 points.

However, the trading volume fell 13.24pc to 449.24 million shares while the traded value dipped 3.5pc to Rs28.18bn day-on-day.

Stocks contributing significantly to the traded volume included Cnergyico PK (31.19m shares), K-Electric (29.67m shares), Citi Pharma (25.41m shares), Dewan Farooque (24.72m shares) and WorldCall Telecom (20.79m shares).

The shares registering the most significant increases in their share prices in absolute terms were Rafhan Maize (Rs100.01), Unilever Foods (Rs98.51), Nestle Pakistan (Rs89.60), Indus Motor Company (Rs39.79) and Shahmurad Sugar (Rs36.25). The companies registering significant decreases in their share prices in absolute terms were Hoechst Pakistan (Rs48.08), Ismail Industries (Rs47.96), Dawood Lawrencepur (Rs22.26), Sapphire Fibres (Rs16.99) and Colgate Pakistan (Rs13.34).

Published in Dawn, January 30th, 2025

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