PSX in consolidation phase, loses 533 points

KARACHI:

Pakistan Stock Exchange (PSX) on Friday registered a notable downturn of over 500 points because of market consolidation and concerns over an increase in inflation.

Investors reacted negatively to the disappointing earnings of energy companies including Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL). Additionally, uncertainty surrounding the tax reforms and budget proposals ahead of the International Monetary Fund (IMF) review contributed to the decline.

Although the day witnessed a positive opening in the backdrop of strong earnings of AGP Limited, the market succumbed to selling pressure in latter hours.

Ahsan Mehanti of Arif Habib Corp commented that stocks closed under pressure amid consolidation near the end of earnings season and government projections of a spike in inflation next month.

He added that dismal earnings of PPL and OGDC, concerns about the IMF-recommended corporate and provincial tax reforms and budget proposals played the role of catalysts in bearish close at the PSX.

At the end of trading, the benchmark KSE-100 index recorded a decrease of 532.64 points, or 0.47%, and settled at 113,251.67.

In its review, Topline Securities commented that the KSE-100 index opened on a positive note and rose to the intra-day high of 482 points, which could be attributed to AGP Limited’s result announcement in the pre-opening session, which set a positive tone in the market.

AGP posted 4QCY24 earnings per share (EPS) of Rs4.27, up 73% quarter-on-quarter and 101% year-on-year, taking CY24 EPS to Rs9.53, up 70.50%. It also declared a final cash dividend of Rs4 per share.

However, during the latter hours, trade pressure emerged as the index dipped to close at 113,252, down 0.47%, it said.
Top negative contributors were Engro Holdings, Fauji Fertiliser Company, Systems Limited, Mari Petroleum, Engro Fertilisers and The Searle Company, which wiped off 521 points from the index.

Among other corporate results, Indus Motor posted 2QFY25 EPS of Rs61.92, down 4% quarter-on-quarter and up 179% year-on-year, taking 1HFY25 EPS to Rs126.69, up 101% year-on-year. The result was accompanied by an interim dividend of Rs37 per share.

Additionally, PPL declared 2QFY25 EPS of Rs10.02, up 20% quarter-on-quarter and down 32% year-on-year, which pushed 1HFY25 EPS to Rs18.71, down 26% year-on-year. The company announced an interim cash dividend of Rs2 per share.
OGDC posted 2QFY25 EPS of Rs9.63, down 44% year-on-year but up 1% quarter-on-quarter, which took 1HFY25 EPS to Rs19.17, down 33% year-on-year. The company announced an interim dividend of Rs4.05 per share, Topline said.
Ali Najib of Insight Securities commented that the PSX observed a mixed behaviour as KSE-100 continued its consolidation phase.
A positive opening was seen with investors strengthening their positions. The index again tried to penetrate the 114k territory by hitting the intra-day high at 114,266 (+482 points), he noted.
However, the benchmark index continued to face tough resistance at 114k, making it a hard nut to crack. It could not withstand profit-taking pressure and lost the 114k level by closing below it, Najib added.
JS Global analyst Muhammad Hasan Ather said that the market faced selling pressure in the energy sector, with stocks like Mari Petroleum, Pakistan Oilfields and PPL trading in the red. Despite buying interest in the banking sector, investors remained cautious due to concerns over inflation and global economic uncertainties, he said.
Overall trading volumes increased to 472.1 million shares compared with Thursday’s tally of
397.4 million.
Shares of 444 companies were traded. Of these, 119 stocks closed higher, 263 fell and 62 remained unchanged. The value of shares traded during the day was Rs22.8 billion.
Pakistan International Bulk Terminal was the volume leader with trading in 52.2 million shares, gaining Rs0.66 to close at Rs9.6. It was followed by WorldCall Telecom with 43.5 million shares, falling Rs0.04 to close at Rs1.41 and National Bank of Pakistan with 28.3 million shares, gaining Rs3.77 to close at Rs80.01. During the day, foreign investors sold shares worth Rs836.6 million, the NCCPL reported.