KARACHI: The stock market on Wednesday remained under selling pressure for the second consecutive session post-SBP policy rate cut, dragging the KSE index below 78,000 on a host of negative factors.

Ahsan Mehanti of Arif Habib Corporation said stocks closed sharply lower on investor concerns about S&P Global keeping Pak­istan’s ratings unchanged at CCC+, citing reliance on foreign assistance for debt obligations, political risks to the economy and structural reforms.

He said the falling rupee, political noise and protests over surging industrial power tariffs also contributed to the bearish close.

Topline Securities Ltd said the market witnessed a volatile session amid growing economic uncertainty.

However, major positive contributions to the index came from Fauji Fertiliser, Fatima Fertiliser, Engro Corporation, Pakistan Tobacco and Nestle Pakistan, cumulatively adding 90 points. On the other hand, United Bank Ltd (UBL), Systems Ltd, Lucky Cement, Oil and Gas Development Company and Pakistan Oilfield came under selling pressure, taking away 321 points.

UBL posted consolidated earnings per share (EPS) of Rs12.1 in 2Q2024, along with an interim cash dividend of Rs11 per share. Engro Fertiliser also announced an EPS of Rs1.25 and declared an interim cash dividend of Rs3 per share for 2Q2024.

As a result, the benchmark index hit an intraday high of 79,151.82 points and a low of 77,810.17. However, the index extended its overnight downturn and lost 741.82 points or 0.94pc to settle at 78,628.81 on a day-on-day basis.

The overall trading volume rose 22.20pc to 382.52 million shares. The traded value, however, dipped 16.90pc to Rs14.63bn on a day-on-day basis.

Foreign investors remained net sellers as they offloaded shares worth $0.79m.

Published in Dawn, August 1st, 2024