KSE-100 Loses 50 Points Amid IMF-Related Tax Concerns
KARACHI: The Pakistan Stock Exchange (PSX) ended the week in the red, dropping 50 points as investors grappled with pre-budget uncertainty and looming IMF-backed tax proposals aimed at exporters and industries.
Friday’s session was marked by limited trading within a tight range, ultimately closing just above 119,100 points. Although the index briefly crossed the 120,000 mark during the day, it couldn’t maintain that momentum as strong resistance levels prevented further gains.
“Stocks ended lower due to pre-budget jitters and worries about weak exports,” said Ahsan Mehanti, Managing Director of Arif Habib Corp. “IMF-driven tax proposals, approval of the Off-grid (CPPs) Levy Bill by the National Assembly, and rupee instability all contributed to the bearish close.”
By the end of the session, the KSE-100 index had shed 50.37 points (-0.04%) to finish at 119,102.67.
According to Arif Habib Limited (AHL), 39 stocks gained while 59 fell. Leading the charge were Engro Holdings (+3.08%), Attock Refinery (+3.48%), and Pakgen Power (+4.6%), while Fauji Fertiliser Company (FFC, -1.91%), MCB Bank (-1.09%), and Systems Limited (-0.98%) were the main drags on the index.
Despite surpassing 120,000 points during the week, the index couldn’t hold its ground, with 120k acting as a stubborn barrier. AHL noted that the inability to break past this resistance raises the risk of a further slide towards support levels.
Topline Securities noted that the index oscillated between a high of +389 points and a low of -488 points during the day, ending the week at 119,103, down 0.04%.
The biggest positive index movers were Engro Holdings, Attock Refinery, Pakgen Power, Meezan Bank, and Pakistan Services, which added 280 points collectively. The main negative contributors included FFC, MCB Bank, Systems Limited, Mari Petroleum, Pakistan Petroleum, HBL, Hubco, and Engro Fertilisers, pulling the index down by 257 points.
In terms of traded value, Attock Refinery led with Rs1.49 billion, followed by Frieslandcampina Engro (Rs1.01 billion), Mari Petroleum (Rs564 million), Hubco (Rs557 million), and Pakistan Petroleum (Rs505 million), Topline added.
JS Global’s Mohammed Waqar Iqbal observed that trading activity was muted as investors adopted a wait-and-see approach ahead of the federal budget. The index fluctuated between 119,542 points (+389) and 118,665 points (-487), closing marginally down by 50 points at 119,102.
Volumes were also lighter, with 338 million shares traded compared to 589.8 million in the previous session, amounting to Rs18.5 billion in turnover. Out of 459 companies traded, 183 advanced, 232 declined, and 44 remained unchanged.
Big Bird Foods led in volume with 32.7 million shares traded, gaining Rs2.09 to close at Rs53.86. It was followed by WorldCall Telecom (19.4 million shares, down Rs0.02 to Rs1.25) and Descon Oxychem (16.1 million shares, up Rs2.28 to Rs35.96). According to NCCPL data, foreign investors offloaded shares worth Rs336.5 million during the day.
