Karachi, September 9, 2024 – The Pakistan stocks experienced a significant decline on Monday, with the benchmark KSE-100 index dropping 283 points amid a highly volatile trading session. The index closed at 78,615 points, down from last Friday’s close of 78,898 points, reflecting a 0.36% decrease.
According to analysts at Topline Securities Limited, the market witnessed substantial fluctuations throughout the day, with the KSE-100 peaking at 79,214 points and dipping to as low as 78,546 points. The volatility was driven by mixed sentiment in the market, as investors navigated a range of corporate earnings reports and broader economic concerns.
Major contributors to the decline included Millat Tractors Limited (MTL), Hub Power Company (HUBC), United Bank Limited (UBL), Habib Bank Limited (HBL), and Meezan Bank Limited (MEBL). Collectively, these stocks accounted for a 354-point drop in the KSE-100 index, highlighting their outsized impact on Monday’s trading session.
Despite the decline, trading activity remained robust, with 490 million shares exchanged across the market, amounting to a total turnover of Rs 10 billion. WorldCall Telecom Limited (WTL) emerged as the most actively traded stock, with 86 million shares changing hands.
Analysts at Arif Habib Limited noted that the index initially showed signs of recovery, with intraday gains pushing the index above 79,000 points. However, a lack of sustained momentum resulted in a pullback, leading to the eventual closing below the 79,000 mark.
Among the stocks that performed well, Fauji Fertilizer Company (FFC) saw a 1.41% rise, Lucky Cement (LUCK) gained 1.29%, and Pioneer Cement (PIOC) surged by 4.8%, making them the largest contributors to index gains. On the other hand, Millat Tractors Limited (MTL) was the biggest drag on the index, falling by 6.55% following its fiscal year 2024 earnings report, which showed earnings per share (EPS) of PKR 51.7, a 194% year-on-year increase. However, the market was disappointed by the limited dividend payout, as MTL’s merger with Millat Equipment Limited is still pending approval from the Lahore High Court, restricting further dividend announcements.
Cement sector stocks were a bright spot in the market, with Pioneer Cement (PIOC), DG Khan Cement (DGKC), and Lucky Cement (LUCK) all showing gains. Analysts suggest that the performance of cement companies will be critical for sustained index movement this week.
The outlook for the KSE-100 index remains cautiously positive as long as it stays above 78,000 points, with cement sector stocks expected to drive performance in the coming days.
