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Express Tribune
16-04-2025
- Business
- Express Tribune
PSX ends two-day rally on profit-taking
Listen to article The Pakistan Stock Exchange (PSX) ended lower on Wednesday, snapping a two-day winning streak, as the benchmark KSE-100 index fell around 750 points on the back of profit-taking at higher levels. Despite the early momentum that pushed the index above 117,424, late-session selling, particularly in large-cap exploration and production (E&P) stocks, reversed gains. The market also failed to recover the "Monday Tariff Gap," signalling a bearish near-term bias. Among active stocks on the index, 25 advanced while 71 declined. UBL (+0.87%) stood out, reporting a 125% year-on-year (YoY) jump in 1QCY25 earnings per share (EPS) to Rs29.34 along with a dividend of Rs11 and a two-for-one stock split. "Stocks closed sharply lower in the earnings season amid 3.5% contraction in large-scale manufacturing (LSM) growth for February 2025 and investor fears over the outcome of US-China tariff war," said Ahsan Mehanti of Arif Habib Corporation. "Rupee instability and the dismal data of cement sales for March played the role of catalysts in bearish close at the PSX," he added. At the end of trading, the benchmark KSE-100 index posted a decline of 755.40 points, or 0.65%, and settled at 116,020.11. Arif Habib Limited (AHL), in its report, wrote that the market failed to recover the "Monday Tariff Gap" and witnessed a downside displacement, reflecting a bearish near-term bias. Key gainers included UBL (+0.87%), Engro Fertilisers (+1.28%) and MCB Bank (+0.94%) while Mari Petroleum (-2.51%), Pakistan Petroleum (-1.75%) and PSO (-2.43%) were the major drags on the index, it said. UBL reported strong 1QCY25 results with EPS of Rs29.34 (+125% YoY) and a dividend per share of Rs11. It also announced a two-for-one stock split. The performance was driven by a 200% YoY rise in net interest income and a Rs1.6 billion provisioning reversal. Meanwhile, AHL said, Pakistan planned to boost imports of cotton and soybean from the US in an effort to reduce its trade surplus and avoid potential US tariffs. "Technicals show a downside move from the key gap zone (117.6k118.6k), with the high-on-day at 117.4k, reinforcing the bearish outlook." Topline Securities reported that the bourse had a hot and cold session, which reflected a mix of optimism and caution among investors. The market opened on a strong footing, gaining 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage, it said. The index slipped to the intra-day low of 999 points and closed at 116,020, down 755 points. The volatility could be largely attributed to the ongoing trade tensions between the United States and China, which reignited concerns about global economic stability and impacted investor sentiment, Topline added. JS Global analyst Muhammad Hasan Ather said that the KSE-100 index snapped the two-day winning streak to close lower at 116,020 (-0.65%). Stocks carried the momentum in early trade to test levels above 117,424 on the benchmark index, however, late selling wiped out the gains, eventually dragging the market into the red, mainly led by large-cap E&P stocks. Bank and cement stocks kept the excitement going as investors rode the market. With external accounts strengthening and a robust liquidity, the momentum was expected to remain strong, especially in banking and export-driven sectors, he added. Overall trading volume was recorded at 481.8 million shares compared with the previous session's tally of 479.5 million. The value of shares traded during the day was Rs38.5 billion. Shares of 451 companies were traded in the ready market. Of these, 140 stocks closed higher, 260 declined and 51 remained unchanged. Cnergyico PK led the volume chart with 35.6 million shares, losing Rs0.02 to close at Rs8.51. It was followed by The Bank of Punjab with 25.5 million shares, declining Rs0.06 to close at Rs11.11 and Fauji Foods with 25.3 million shares, gaining Rs0.10 to close at Rs15.91. During the day, foreign investors bought shares worth Rs222 million, according to the NCCPL.
Express Tribune
15-04-2025
- Business
- Express Tribune
Bourse extends gains on rating upgrade
Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE Listen to article Pakistan Stock Exchange (PSX) on Tuesday continued its upward momentum as investors remained optimistic in the backdrop of positive triggers, particularly the upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. Analysts mentioned that a surge in global equities, alongside easing inflation and upbeat remittances data, drove the rally. The benchmark KSE-100 index, following continuous fluctuations, reached its intra-day high at 117,362 points after midday. Later, it started descending gradually and hit the day's low at 116,646 just before close. It ended the day with a gain of 385 points at 116,775. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher in the earnings season rally amid reports of Fitch Ratings' upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. He added that surging global equities, upbeat remittances data and lower inflation played the role of catalysts in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 385.47 points, or 0.33%, and settled at 116,775.50. In its review, Topline Securities commented that the PSX ended on a strong note, with the KSE-100 index gaining 385 points. The positive momentum was supported by the stability in global markets and the onset of corporate results season, prompting investors to take fresh positions. Gains were largely driven by key index movers including Engro Holdings, Lucky Cement, Oil and Gas Development Company, TRG Pakistan and Pakistan State Oil (PSO), which added 325 points, it said. In its report, Arif Habib Limited (AHL) remarked that early gains failed to sustain above the 117,000 level and the "Monday Tariff Gap" continued to cap gains. Some 51 shares rose while 45 fell on KSE-100. Lucky Cement (+1.58%), TRG Pakistan (+6.28%) and Oil and Gas Development Company (+1.08%) contributed the most to the index gains while Hub Power (-0.89%), Meezan Bank (-0.82%) and Mari Petroleum (-0.58%) were the biggest drags, AHL noted. It added that Fitch upgraded Pakistan's long-term foreign currency debt rating to B- from CCC+. The upgrade reflects Fitch's increased confidence that Pakistan will sustain its recent progress on narrowing budget deficits and implementing structural reforms, supporting its IMF programme performance and funding availability. Additionally, the government forecast production of 28.6 million tons of wheat, a decrease of 10.6% year-on-year. The brokerage house said that the "Monday Tariff Gap" between 117,600 and 118,600 points remained the key level for the current week. JS Global analyst Muhammad Hasan Ather stated that KSE-100 continued its upward trajectory, rising 0.8% to reach the intra-day high of 117,362 amid strong trading volumes. It was fuelled primarily by record-breaking remittances of $4.1 billion and the SBP governor's projection of $14 billion in foreign currency reserves by June 2025. Market sentiment received additional support from the Fitch rating upgrade. With improving external accounts and strong liquidity flows, "we expect continued positive momentum in the market, particularly in banking and export-oriented sectors", the analyst said. Overall trading volumes decreased to 479.5 million shares compared with Monday's tally of 484.5 million. The value of shares traded during the day was Rs30.4 billion. Shares of 447 companies were traded. Of these, 219 stocks closed higher, 174 fell and 54 remained unchanged. Cnergyico PK was the volume leader with trading in 32.1 million shares, falling Rs0.11 to close at Rs8.53. It was followed by TRG Pakistan with 21.5 million shares, gaining Rs4.01 to close at Rs67.90 and The Bank of Punjab with 20.8 million shares, falling Rs0.19 to close at Rs11.17. During the day, foreign investors sold shares worth Rs527 million, the National Clearing Company reported.
