Stocks close in red amid economic uncertainty
KARACHI: The Pakistan Stock Exchange (PSX) experienced a mixed session on Monday, with the KSE-100 Index closing 205 points lower after fluctuating between gains and losses throughout the day.
The stock market’s benchmark index began the session on a positive note, reaching an intra-day high of 79,014.68. However, profit-taking in the second half of the session pushed the index down to the intraday low of 78,240.36. The index finally settled at 78,283.29, down 0.26pc or 204.92 points.
Ahsan Mehanti of Arif Habib Corporation said stocks closed lower on economic uncertainty and concerns over the outcome of ongoing regulatory oversight on share trading for public interest.
Midsession support was seen on the back of upbeat CPI inflation data for August, which came in at 9.6pc year-on-year, Mr Mehanti said.
“Political noise and uncertainty over IMF approvals on power tariff cut with Rs2.8 trillion funding plan stalling industrial closures played a catalyst role in bearish close,” he said.
The brokerage house Topline Securities said in its post-market report that equities “moved in both directions as bullish and bearish forces confronted throughout the session to take the helm at PSX. However, bears emerged as a winner”.
“Investors chose to conduct profit-taking in selective stocks of banking, fertiliser, auto and steel sectors,” it said.
As a result, MCB Bank Limited (MCB), Habib Bank Limited (HBL), Engro Corporation (ENGRO), Millat Tractors Limited (MTL) and International Industries Limited (INIL) collectively lost 410 points.
On the other hand, Hub Power Company Limited (HUBC), Mari Petroleum Company Limited (MARI), and Bank AL Habib Limited (BAHL) collectively added 326 points as they witnessed renewed buying interest.
Trading volume at the bourse reached over 456 million shares, with a total value of Rs15.8 billion. Hascol Petroleum Limited (HASCOL) led the volume chart, with over 46m shares traded.
The benchmark index closed the previous week on a bearish note, as security concerns, coupled with the prolonged delay in the IMF executive board’s approval for the much-anticipated first tranche under the $7bn bailout package, kept market sentiment depressed.
Published in Dawn, September 3rd, 2024