Market closes at 47,429.82 after losing 956.43 points.
Shares of 343 companies traded during session.
“Correction, after market hit 49,000, is here but will soon subside.”
KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday witnessed a steep decline after the benchmark KSE-100 fell by nearly 1,000 points as it went through a correction since jumping past the 49,000 mark.
The market closed the day on a negative note as it shed 956.43 points or 1.98% to settle at 47,429.82 points.
According to a report by Arif Habib Limited, the 48,000 mark proved to be pivotal and trade below saw downside momentum accelerate. “The correction that we had been anticipating since the market hit 49,000 is here but will soon subside,” it added.
However, there are several factors that weighed on the market sentiments including political uncertainty and the ambiguity surrounding the upcoming elections and caretaker set-up.
Pakistan-Kuwait Investment Company’s Head of Research Samiullah Tariq said that the stocks plunged as political jitters sparked a massive profit-taking spree with investors shedding risky assets in an overbought market amid economic headwinds that are far from losing strength — much less changing course in the near to medium term.
Head of Equities at Intermarket Securities Raza Jafri told Geo.tv that selling was witnessed in profit-taking in state-owned oil explorers which have yet to see an improvement in circular debt.
“In addition, it is possible that some redemptions may have come through given the KSE-100’s sharp Fiscal Year To Date (FYTD) rise in the backdrop of sustained high inflation. On the whole, it is not surprising to see episodic profit taking came through. Across FY24 however, Pakistan remains an excellent macro trade, with valuations likely to rerate when the interest rate cycle turns,” he added.
Shares of 343 companies were traded during the session. At the close of trading, 49 scrips closed in the green, 278 in the red, and 16 remained unchanged.
Cynergico PK Limited was the volume leader with 28.31 million shares traded, losing Rs0.33 to close at Rs3.47. It was followed by Oil & Gas Development Company Limited with 27.78 million shares traded, losing Rs7.72 to close at Rs97.85, and K-Electric Limited with 24.68 million shares gaining Rs0.13 to close at Rs2.10.
The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.
Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.
Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.
He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.
The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.
This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.
The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.
This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.
The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.
When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.
The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.
Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.
Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.
These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.