KSE-100 Index Loses 222 Points Amid Profit Taking

KSE-100 Index Loses 222 Points Amid Profit Taking

Karachi, October 14, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a decline of 222 points on Monday, closing at 85,261 points, down from last Friday’s closing of 85,483 points. This drop was primarily driven by profit-taking activity among investors.

Analysts from Topline Securities Limited reported that the KSE-100 index opened on a positive note, initially gaining momentum and reaching a high of 621 points early in the session. However, the gains were short-lived as investors opted to lock in profits, resulting in an intraday low of 327 points before the index settled at a 0.26% decline for the day.

The decline in the index was largely attributed to key stocks like Hub Power Company (HUBC) and Engro Fertilizers (EFERT). HUBC saw a significant drop of 9.15%, following the announcement of the early termination of one of its contracts, which led to an expected downward revision in earnings. EFERT also underperformed, falling 4.1% after reporting its third-quarter results. The company declared earnings per share (EPS) of Rs13.47 and a dividend of Rs2.50 per share, which was below market expectations, further weighing down on the index.

Other major contributors to the KSE-100 index’s decline included Oil & Gas Development Company (OGDC), Bank Al Habib Limited (BAHL), and Engro Corporation, which collectively subtracted a total of 532 points. Despite the broader market downturn, a few stocks, including Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), Attock Refinery Limited (ATRL), and International Steels Limited (ISL), provided some relief, collectively adding 326 points to the index.

Trading activity on Monday was lower than in the previous session, with 477 million shares being exchanged, amounting to a total value of Rs 23.6 billion. Worldcall Telecom Limited (WTL) was the most actively traded stock, with 41 million shares changing hands during the day.

Market participants noted that the decline in trading volume and value reflects a cautious sentiment among investors, as uncertainties over corporate earnings and broader economic conditions continue to influence market behavior. Looking ahead, analysts suggest that the market may remain volatile in the short term, with investors closely watching corporate results and macroeconomic developments for further cues.

Despite the day’s losses, market experts maintain a cautiously optimistic outlook for the PSX, with expectations of recovery as corporate earnings season progresses and external economic factors stabilize.