Karachi, October 10, 2024 – The Pakistan Stock Exchange (PSX) witnessed a bearish session on Thursday, as the benchmark KSE-100 index closed down by 216 points, settling at 85,453 points.
This drop follows Wednesday’s closing of 85,669 points, as investors adopted a cautious approach and booked profits.
According to analysts at Topline Securities Limited, the day saw a tug-of-war between bulls and bears, with the latter eventually taking control. The KSE-100 index recorded an intraday high of 344 points before sliding into negative territory. By the session’s end, the index had lost 216 points, equivalent to a 0.25% decline. The day’s performance highlighted a profit-taking mood among investors as the market approached higher levels.
Market sentiment was heavily influenced by developments in the energy sector, specifically involving two major Independent Power Producers (IPPs), Hub Power Company Limited (HUBC) and Lalpir Power Limited (LPL). Both companies announced the early termination of their power contracts, which triggered some volatility. HUBC further disclosed that an agreement had been reached with the Government of Pakistan (GOP) and the Central Power Purchasing Agency-Guarantee (CPPAG) to settle the company’s outstanding receivables up to October 1, 2024. This news provided some relief to the market, but overall sentiment remained cautious.
On the performance front, key stocks such as Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), National Bank of Pakistan (NBP), Pakistan Telecommunication Company Limited (PTC), and The Searle Company Limited (SEARL) contributed positively to the index, collectively adding 245 points. However, these gains were overshadowed by declines in major stocks including Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Habib Bank Limited (HBL), and Lucky Cement (LUCK), which collectively dragged the index down by 267 points.
Trading activity was brisk, with a total of 503 million shares changing hands, amounting to a value of Rs 27.9 billion. Pakistan Telecommunication Company Limited (PTC) stood out as the most actively traded stock, with 52.2 million shares traded.
The market’s near-term outlook remains cautious as investors react to both corporate announcements and broader economic developments. While there are opportunities for gains, uncertainty in key sectors, particularly power and banking, is likely to keep the market under pressure in the coming sessions.