Karachi, September 30, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index experienced a decline on Monday, shedding 178 points as energy-related stocks led the market lower. The index closed at 81,114 points, down from Friday’s closing of 81,292 points, reflecting a 0.22% decrease.
Market analysts at Topline Securities attributed the decline in KSE-100 Index primarily to a drop in key energy stocks, particularly Hub Power Company (HUBC), which contributed significantly to the overall slump. HUBC’s share price dropped by 3.6%, wiping out 139 points from the KSE-100 Index. This decline was driven by concerns over potential revisions to its power plant contracts and uncertainty surrounding its future payouts, causing investors to react cautiously.
Several other notable stocks also contributed to the downward of KSE-100 index. Among them were Meezan Bank Limited (MEBL), TRG Pakistan, Bank AL Habib Limited (BAHL), and Engro Corporation (ENGRO), which collectively eroded 194 points from the index. The overall negative sentiment in these sectors weighed on the broader market, leading to a subdued trading session.
However, despite the losses in energy and financial sectors, the market witnessed some positive performance in other stocks. Mari Petroleum Company Limited (MARI), for instance, saw a significant recovery in its share price after initially declining following the distribution of bonus shares to investors. MARI managed to bounce back, closing 4.1% higher and contributing 130 points to the index. This positive movement provided some support to an otherwise negative session.
Similarly, Fauji Fertilizer Company (FFC) remained resilient, posting a 2.6% gain by the close of trading, adding further positive momentum to the market.
Trading activity remained strong throughout the day, with a total of 297 million shares exchanged, amounting to a turnover of Rs 14 billion. Pakistan International Airlines Holding Company (PIAHCLA) emerged as the most actively traded stock, with a volume of 43 million shares, reflecting heightened interest in the aviation sector.
Looking ahead, analysts expect the market to remain volatile amid ongoing economic challenges and concerns over policy adjustments. The energy sector, in particular, will be closely watched as investors assess the potential impact of regulatory changes on companies like HUBC. Meanwhile, market participants will continue to monitor corporate earnings and macroeconomic developments to gauge the market’s future direction.
The KSE-100 Index is likely to see fluctuations in the coming days, with both local and global factors influencing investor sentiment.
