KSE-100 index ends down by 445 points on profit taking

KSE-100 index ends down by 445 points on profit taking

KARACHI – The Pakistan Stock Exchange (PSX) experienced a notable downturn on Friday as the benchmark KSE-100 index fell by 445 points, closing at 40,887 points compared to the previous day’s 41,333 points.

This decline, attributed to profit-taking activities ahead of the weekend, has raised concerns among investors about the sustainability of the index above 40,000 points.

Analysts from Arif Habib Limited noted that the KSE-100 index registered a significant drop, prompting questions among investors about whether the market has reached its peak and whether the index can maintain levels above 40,000. The session ended on a choppy note, with investors opting not to hold positions over the weekend.

Despite impressive results, Engro Fertilizers Limited’s (EFERT) performance failed to garner favor among investors, leading to substantial selling pressure on the stock. The market witnessed major volumes in K-Electric (KEL), Pakistan International Bulk Terminal (PIBTL), Pak Elektron Limited (PAEL), and EFERT. However, these stocks concluded the session in the red, with the exception of PIBTL, which saw a gain of 2.4 percent.

Sector-wise activity primarily centered on the Power, Cement, and Chemical sectors, while the Banking sector appeared to lose traction among investors. The sectoral breakdown revealed notable negative contributions from Banks (-132 points), Exploration & Production (E&P) (-89 points), Power (-43 points), Fertilizer (-41 points), and Oil & Gas Marketing Companies (O&GMCs) (-31 points).

Market volumes increased from 138 million shares to 169 million shares, reflecting a 22 percent day-on-day increase. The average traded value also saw a significant uptick, rising by 41 percent to reach US$61.7 million, compared to the previous day’s US$43.8 million.

Key stocks that significantly contributed to the volumes included KEL, PIBTL, PAEL, EFERT, and Maple Leaf Cement Factory Limited (MLCF), collectively forming 37 percent of the total volumes.

In terms of points, stocks that made positive contributions included Fauji Fertilizer Company (FFC) (+20 points), PIBTL (+6 points), Standard Chartered Bank Pakistan Limited (SCBPL) (+3 points), Adamjee Insurance Company Limited (AICL) (+2 points), and D.G. Khan Cement Company Limited (DGKC) (+2 points).

On the flip side, stocks that negatively impacted the index included Habib Bank Limited (HBL) (-47 points), Hub Power Company Limited (HUBC) (-33 points), Oil and Gas Development Company Limited (OGDC) (-31 points), Engro Corporation Limited (ENGRO) (-28 points), and Pakistan Oilfields Limited (POL) (-26 points).

The market’s performance and the dynamics observed on Friday underscore the inherent volatility of financial markets, driven by factors such as profit-taking, investor sentiment, and specific corporate results. Investors will be closely monitoring developments to gauge market resilience and potential trends in the coming sessions.