Latest news with #TariffGap
Express Tribune
24-04-2025
- Business
- Express Tribune
Border tensions spark sell-off at PSX
Shares of 345 companies were traded. At the end of the day, 75 stocks closed higher, 254 declined and 16 remained unchanged. PHOTO: FILE Listen to article The Pakistan Stock Exchange (PSX) on Thursday nosedived over 2,200 points as escalating border tensions between Pakistan and India sparked investor anxiety. A heated war of words and airspace restrictions heightened fears of regional instability. The unfolding situation triggered a broad-based sell-off as market participants rushed to reduce exposure in a volatile environment. The KSE-100 index plunged to the intra-day low of 114,661 soon after the commencement of trading, but it recovered quickly and rose to the intra-day high of 116,568. It started losing ground again and closed with a sharp loss of 2,206 points. Pressure from the futures rollover week and caution ahead of major corporate earnings announcements also pushed the market down. Heavyweights such as power, oil and bank stocks led the slump. Despite the sell-off, some buying interest was seen in oil and automobile stocks. According to Arif Habib Corp MD Ahsan Mehanti, stocks fell across the board as investors feared an escalation in tensions following India's action post-attacks in occupied Kashmir. Additionally, a weak rupee and concerns over trade ties triggered a bearish close at the PSX, he said. At the end of trading, the benchmark KSE-100 index recorded a sharp fall of 2,206.33 points, or 1.88%, and settled at 115,019.82. Topline Securities wrote in its commentary that sentiment soured at the bourse as the KSE-100 index extended its previous day's losses. Weighed down by escalating regional tensions between India and Pakistan and the conclusion of futures rollover week, the market adopted a risk-off tone. The benchmark index touched the intra-day low of 2,564 points before closing down by 2,206 points. Negative contribution mainly came from Hub Power, Engro, Mari Petroleum, Bank Alfalah and UBL, it said. Despite the widespread bearish activity, Pakistan State Oil led trading with a value of Rs2.36 billion. Besides, Pakistan Tobacco reported Q1 earnings per share (EPS) of Rs24.53, Topline added. Arif Habib Limited (AHL), in its review, wrote that the "Tariff Gap" was replaced by the "Indus Waters Treaty Gap," marking two bearish gap-down openings in April. "These can be contrasted with the bullish International Monetary Fund (IMF)-driven gaps seen in 2023." Market breadth remained weak as only eight stocks closed higher while 89 declined. The largest negative contribution came from Hub Power (-2.91%), Bank Alfalah (-3.54%) and Mari Petroleum (-2.38%). On the positive side, Pakgen Power (+9.73%), Pakistan Tobacco (+1.69%) and Unilever Pakistan Foods (+1.96%) defied the downtrend, it said. Fauji Cement reported 9MFY25 EPS of Rs3.84, representing a 34% year-on-year (YoY) increase, but results came in below market expectations. Faysal Bank announced 1QCY25 EPS of Rs3.60, down 18% YoY, which was in line with estimates. KTrade Securities said in its market wrap that the ongoing border tensions between Pakistan and India dented market sentiment, leading to a sell-off across the board. Pakistan has responded to Indian aggression with countermeasures, including closing the airspace and the Wagah border and rejecting the suspension of Indus Waters Treaty. Banking, oil and gas, fertiliser and cement sectors were the top contributors to the index's decline, with Engro, Hub Power, Bank Alfalah, Mari Petroleum, Fauji Fertiliser, MCB Bank and UBL leading the charge, KTrade observed. JS Global analyst Muhammad Hasan Ather said the KSE-100 index dropped 1.9% amid rising geopolitical tensions and fears over the futures rollover week and earnings season. Despite a brief midday recovery, the index witnessed heightened selling pressure that forced investors to remain cautious. Overall trading volumes decreased to 506.7 million shares as compared with Wednesday's tally of 605.2 million. The value of shares traded during the day was Rs24.5 billion. Shares of 456 companies were traded. Of these, 83 stocks closed higher, 339 fell and 34 remained unchanged. Power Cement led the volume chart with 37.3 million shares, rising Rs0.25 to close at Rs14.45. It was followed by WorldCall Telecom with 31.2 million shares, falling Rs0.02 to close at Rs1.31 and Sui Southern Gas Company with 23.4 million shares, falling Rs0.06 to close at Rs41.05. During the day, foreign investors bought shares worth Rs638 million, the National Clearing Company reported.
Express Tribune
24-04-2025
- Business
- Express Tribune
PSX suffers setback amid economic jitters
Listen to article The Pakistan Stock Exchange (PSX) on Wednesday experienced a sharp downturn, marking a clear reversal in sentiment after a four-day rally. Investor confidence waned as macroeconomic and geopolitical uncertainties came back into focus, prompting a shift towards caution and profit-taking. Despite a positive start, early optimism quickly gave way to broad-based selling across key sectors. The decline followed the International Monetary Fund (IMF) and the World Bank downgrading Pakistan's GDP growth forecast and increased anxiety over currency weakness, political instability and regional unrest. The KSE-100 index hit the intra-day high of 118,811 points before profit-taking pulled it down to the intra-day low of 117,120. At the end of trading, the benchmark KSE-100 index recorded a substantial decrease of 1,204.21 points, or 1.02%, and settled at 117,226.15. According to Arif Habib Corp MD Ahsan Mehanti, stocks closed sharply lower after the IMF slashed Pakistan's FY25 GDP growth forecast to 2.6% amid the Trump tariff blow. "Fitch Ratings' outlook of a weakening rupee, political noise and fears of fallout from the unrest in Indian-occupied Kashmir resulted in a bearish close at the PSX," he added. Topline Securities wrote in its commentary that after four consecutive bullish sessions, bears returned to the PSX on Wednesday as the index witnessed heightened volatility, plunging 1,309 points intra-day and closing down 1,204 points at 117,226. It attributed the reversal in sentiment largely to escalating geopolitical tensions, which prompted investors to adopt a cautious stance and lock in recent gains. The downward trajectory was significantly influenced by negative contributions from key stocks, including banks and energy companies, which dragged the index down by 526 points, Topline noted. Arif Habib Limited (AHL), in its review, wrote that the "Tariff Gap" capped gains, pushing the price below a key pivot. Market breadth was weak with 73 shares down and 21 up. Top gainers included National Foods (+9.37%), Oil and Gas Development Company (+0.51%), and MCB Bank (+0.42%). In contrast, United Bank (-2.13%), Hub Power (-2.52%) and Mari Petroleum (-1.62%) dragged the index down. In a significant development, Maple Leaf Cement beat expectations by announcing 9MFY25 earnings per share (EPS) of Rs7.51 (+46% YoY), while MCB Bank's 1QCY25 results were in line with expectations. The bias remained negative with the market rejecting the "Tariff Gap", AHL added. KTrade Securities wrote in its market wrap that stocks closed on a downbeat note, with the KSE-100 index falling 1.02%. Ongoing border tensions dented market sentiment, leading to a sell-off across the board. Besides, according to KTrade, the result season has begun and stock-specific activity is being seen, but the overall market sentiment remains bearish. Bank, power, and oil and gas sectors were the top contributors to the index's decrease, with United Bank, Hub Power, Mari Petroleum, Engro Holdings, and HabibMetro losing the most points, it added. JS Global analyst Muhammad Hasan Ather said the index saw a significant decline of 1,204 points mainly due to heightened investor uncertainty, a modest rise in the dollar, and the broader impact of global financial instability. Overall trading volumes decreased to 605.2 million shares as compared with Tuesday's tally of 740.9 million. The value of shares traded during the day was Rs27.8 billion. Shares of 457 companies were traded. Of these, 127 stocks closed higher, 276 fell, and 54 remained unchanged. The Bank of Punjab topped the volume with 58.5 million shares traded, falling Rs0.41 to close at Rs10.04. It was followed by WorldCall Telecom with 33 million shares, losing Rs0.02 to close at Rs1.33 and Power Cement with 29.6 million shares, dipping Rs0.06 to close at Rs14.20. During the day, foreign investors bought shares worth Rs242 million, the National Clearing Company reported.
