The Pakistan Stock Exchange (PSX) faced a volatile trading session on Monday, with the benchmark KSE-100 Index starting strong and gaining over 600 points during intraday trading. However, late-session selling ultimately pushed the index into negative territory.
By the end of the day, the KSE-100 Index settled at 85,261.39 points, marking a decline of 222.02 points or 0.26%.
According to a post-market report by Topline Securities, the KSE-100 opened positively, peaking at a gain of 621 points. However, investor profit-taking soon emerged, reversing the momentum and leading to a dip of 327 points at the index’s lowest intraday level.
The downturn was primarily driven by a downward revision in earnings for Hub Power Company (HUBC), which saw its stock drop by 9.15% after the early termination of a significant contract. Similarly, Engro Fertilizers Limited (EFERT) experienced a 4.1% decline following disappointing third-quarter results, posting earnings per share (EPS) of Rs13.47 and a dividend of Rs2.50 per share, both of which fell short of market expectations.
Key contributors to the index’s decline included HUBC, EFERT, Oil and Gas Development Company (OGDC), Bank Al Habib (BAHL), and Engro Corporation (ENGRO), collectively dragging the index down by 532 points. Conversely, positive movements from companies like Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), Attock Refinery (ATRL), and International Steels Limited (ISL) added 326 points to the index, according to Topline.
In a separate report, Ismail Iqbal Securities noted the volatility during Monday’s session, emphasizing that HUBC faced significant selling pressure due to the confirmed early termination of its power purchase agreement for the base plant.
On Friday, the KSE-100 ended nearly flat, oscillating between gains and losses as investor sentiment was weighed down by concerns over the early termination of independent power producers’ (IPPs) contracts.
In corporate news, Siemens (Pakistan) Engineering Co. Ltd. (SIEM) announced that its Board of Directors approved the sale of its energy portfolio to Siemens Gamesa Renewable Energy (Private) Limited for Rs17.82 billion (~$64 million), as per a notice to the PSX on Monday. Additionally, Pakistan Petroleum Limited (PPL) updated the market on its hydrocarbon production, announcing that a new development well, Adhi South-9, located in Punjab’s Pothwar region, had commenced production.
Meanwhile, EFERT, a subsidiary of Engro Corporation, reported a profit after tax of Rs8.55 billion for the third quarter ending September 30, 2024, reflecting an 11% decline from Rs9.58 billion posted in the same period last year, according to its consolidated financial results shared with the PSX.
The Pakistani rupee remained relatively stable, inching down by 0.01% against the US dollar in the interbank market, closing at Rs277.66, a marginal loss of Re0.02.
