Karachi, January 29, 2024 – Pakistan stocks experienced a significant setback on Monday as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) plunged by 1,039 points, closing at 62,774 points compared to last Friday’s closing of 63,813 points.
Analysts are attributing this sharp decline to foreign investors’ substantial selling activities.
According to analysts at Topline Securities Limited, the negative trend began as the KSE-100 index opened on a low note, reaching an intraday low of (1,095.35) points before closing at 62,774, marking a considerable downturn of 1,039 points. The session was marked by investors opting to book profits and concerns over foreign selling, contributing to the overall negative sentiment in the market.
During the day’s trading, International Steels Limited (ISL) from the steel sector managed to stand out with a positive announcement. ISL revealed its 2QFY24 results, reporting an Earnings Per Share (EPS) of Rs2.84, a significant improvement compared to a Loss Per Share (LPS) of Rs0.89 in 2QFY23. Additionally, ISL announced a dividend of Rs2.5 per share. However, the positive news from ISL did little to offset the broader market decline.
In contrast, Mari Petroleum Company Limited (MARI) from the Exploration & Production (E&P) sector posted mixed results for its 2QFY24. MARI reported an EPS of Rs137.64, reflecting a robust 65% year-on-year increase but a 4% quarter-on-quarter decline. The company also declared a cash dividend of Rs98. Despite MARI’s positive year-on-year performance, the mixed quarterly results added to the market’s concerns.
The market also witnessed the announcement of the Monetary Policy Committee (MPC) meeting, where the State Bank of Pakistan (SBP) decided to maintain the policy rate at 22%. This decision was in line with market expectations and aimed at providing stability amidst the ongoing market volatility. The MPC meeting results may have influenced investor behavior during the trading session.
Trading activity remained robust with over 316 million shares changing hands at the bourse. The total traded value amounted to Rs10.7 billion. K-Electric Limited (KEL) led the volumes chart with the trading of over 46.6 million shares, reflecting the high level of investor participation despite the overall market downturn.
The market’s reaction to the foreign selling and profit booking ahead of key announcements suggests a cautious approach among investors. The coming days will likely witness increased attention on global economic indicators, foreign investment trends, and domestic policies that may impact the direction of Pakistan’s stock market.
