The Pakistan Stock Exchange (PSX) witnessed another day of significant decline as the benchmark KSE-100 index lost 805 points, closing at 33,167 points compared to 33,971 points the previous day.
The downward trend in KSE-100 index was attributed to the substantial depreciation of the Pakistani Rupee and anticipation surrounding the upcoming monetary policy announcement.
According to analysts at Arif Habib Limited, the market experienced a sharp decline of -965 points (-2.9 percent), characterized by negative sentiment fueled by the weakening Rupee against the US Dollar and speculation surrounding the forthcoming Monetary Policy, scheduled to be announced on Monday.
The sell-off was widespread across various sectors, prompting value buyers to seek deeper discounts. Notably, several stocks, including Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGP), Maple Leaf Cement Factory (MLCF), D.G. Khan Cement Company Limited (DGKC), and International Steels Limited (ISL), hit lower circuits.
The banking sector also witnessed a downturn, with Habib Bank Limited (HBL) and United Bank Limited (UBL) experiencing downward trends. The power sector recorded the highest volumes, with 20 million shares traded, driven primarily by K-Electric Limited (KEL), which accounted for 15 million shares. This was followed by banking (12 million shares) and cement (8 million shares).
Key sectors contributing to the market’s performance included Exploration & Production (E&P) (-161 points), Fertilizer (-159 points), Banks (-87 points), Oil & Gas Marketing Companies (O&GMCs) (-68 points), and Cement (-66 points).
Total trading volumes declined from 109 million shares to 90 million shares, representing a 17 percent decrease day-on-day (DoD). Similarly, the average traded value also decreased by 19 percent to US$20.8 million compared to US$25.6 million previously.
Significant contributors to trading volumes included KEL, Pakistan International Bulk Terminal Limited (PIBTL), Unity Foods Limited (UNITY), Bank of Punjab (BOP), and Hub Power Company Limited (HUBCR), accounting for 37 percent of the total volumes.
Among the individual stocks, those making positive contributions to the index included Pakistan Telecommunication Company Limited (PAKT) (+8 points), Habib Metropolitan Bank Limited (HMB) (+6 points), National Foods Limited (NATF) (+3 points), Standard Chartered Bank Pakistan Limited (SCBPL) (+2 points), and Sindh Pioneer Cement Limited (SPWL) (+1 point).
Conversely, stocks making negative contributions included Fauji Fertilizer Company Limited (FFC) (-64 points), Pakistan Petroleum Limited (PPL) (-57 points), Engro Corporation Limited (ENGRO) (-52 points), Oil & Gas Development Company Limited (OGDC) (-42 points), and Pakistan Oilfields Limited (POL) (-37 points).
The ongoing downward trend in the stock market underscores the prevailing uncertainty and challenges faced by investors, reflecting broader concerns about economic stability and policy uncertainty.
