KARACHI: Despite positive news flows, particularly on the economic front, Pakistani equities continued to bleed for the third straight session as the benchmark KSE 100 index plunged amid a broad-based sell-off on Wednesday.

However, subdued quarterly GDP growth of 0.92pc from 2.3pc in the same period last year, mounting political tensions, both at the local and international front and the resurgence of violence dampened investor sentiments who reso­rted to panic-selling since the start of the current week, chopping off 3,437 points from the benchmark index in the last three sessions.

A positive development was the $2bn debt rollover by the United Arab Emir­ates, which, as the government claimed, reflects economic stability achieved with aggressive economic reforms undertaken under the International Monetary Fund’s $7bn Extended Fund Facility.

Furthermore, the bank’s advances to the private sector surged to a record Rs1.9 trillion in the first half of the current fiscal year, indicating economic activities were picking up momentum besides boosting investors’ confidence following a sharp reduction in the interest rate and anticipation of further easing of monetary policy, which fuelled a record-setting spree last week, tossing the index above 11,7,000 level.

Topline Securities Ltd said the local bourse started the day with positive sentiment as investor enthusiasm was fuelled by the prime minister’s visit to the bourse. This optimism led the index to post an intraday gain of 1,697 poi­nts. However, profit book­­ing dominated the later half of the session, pulling the index to an intraday low of 2,205 points. Ultimately, the market closed at 114,148, down by 1,904 points or 1.64pc day-on-day.

The decline in the index was primarily driven by Uni­ted Bank, Pakistan Pet­roleum, Systems Ltd, Mari Petroleum, and Oil and Gas Development Com­p­any, wiping out 659 points. Conversely, Engro Holding Ltd, Fauji Ferti­liser, and Services Indus­tries helped offset the losses, adding 184 points to the index.

Market participants exhibited caution during the session as profit-taking ensued after recent market rallies, reflecting optimism and near-term risk aversion.

Ahsan Mehanti of Arif Habib Corporation said panic-selling was witnessed after the prime minister’s visit to PSX, failing to give relief on account of non-filers trading.

He added that the mid-session support remained on the premier’s affirmation of macroeconomic stability and improving economic indicators.

However, the rupee instability, political tensions and uncertainty over the outcome of slippage over IMF structural benchmarks for the release of the next $1bn tranche played a catalyst in the bearish close, he observed.

However, the trading volume surged 38.75pc to 1.09 billion shares, but the traded value dipped 18.20pc to Rs32.46bn day-on-day.

Stocks contributing significantly to the traded volume included WorldCall Telecom (520.19m shares), Cnergyico PK (41.30m shares), Fauji Foods (34.83m shares), Sui Southern Gas Company (27.15m shares) and Pakistan Refinery (24.53m shares).

The shares registering the most significant increases in their share prices in absolute terms were JDW Sugar Mills (Rs82.27), Rafhan Maize (Rs67.77), Hoechst Pakistan (Rs61.69), Mehmood Textile (Rs43.93) and Dawood Lawrencepur (Rs26.92).

The companies registering significant decreases in their share prices in absolute terms were Hallmark Company (Rs68.23), Nestle Pakistan (Rs61.85), Ismail Industries (Rs54.69), Sapphire Fibres (Rs48.55) and Siemens Pakistan (Rs38.03).

Published in Dawn, January 9th, 2025