KSE-100 index falls 779 points, KMI-30 shows strength

The Pakistan Stock Exchange (PSX) closed in the negative zone on Tuesday after volatile trading, where the benchmark KSE-100 index closed at 177,692.92 points with a decline of 778.95 points. On the other hand, the KMI-30 index, comprising Sharia-compliant companies, performed relatively better and recorded a decline of only 207.69 points.
According to market experts, profit taking by investors after record highs in recent weeks increased the pressure on the market, resulting in a selling trend in major companies in the banking and fertilizer sectors.

Positive start to business but negative end

Investors’ attitude was positive at the start of business on the PSX and the KSE-100 index opened at 179,307.69 points. During the session, the index touched a high of 179,405.56 points, however, due to selling pressure, the market fell and the day’s low was recorded at 177,674.37 points.
Finally, the market closed at 177,692.92 points, showing a decrease of 0.44% compared to the previous session.
Investor interest in the market remained high and about 292.03 million shares of companies included in the index were traded.

Which companies pushed the market down?

The negative performance of a few large companies on Tuesday affected the entire index.
Among the companies that contributed the most negatively in the KSE-100:

• UBL (-249.76 points)
• BAHL (-130.86 points)
• ENGRO (-90.95 points)
• FFC (-63.65 points)
• BAFL (-59.06 points)

Since these companies have a heavy weight in the index, even a small decline in their shares significantly affects the entire market index.

Energy sector supported

Although the overall market remained negative, companies belonging to the oil and gas sector caught the attention of investors.
The prominent companies that contributed positively included:

• OGDC (+88.42 points)
• MLCF (+41.86 points)
• PPL (+39.56 points)
• SNGP (+24.84 points)
• COLG (+22.03 points)

.
According to experts, investor confidence in the energy sector remains intact and this is the reason why buying in shares of some large energy companies continued despite the sharp decline in the market.

KMI-30 showed better resilience

The KMI-30 index, which consists of Sharia-compliant companies, showed much greater stability than the overall market.
Index:

• Open: 256,344.66
• High: 256,514.35
• Low: 254,357.37
• Close: 254,789.27

Recorded at.

• The decline in KMI-30 was only 0.08 percent, which is much less than that of KSE-100.
• This shows that investor confidence in the Islamic investment sector is still strong.

Top Pullers of KMI-30

Companies supporting the index include:

• OGDC (+254.20 points)
• MLCF (+120.35 points)
• PPL (+113.72 points)
• SNGP (+71.40 points)
• DGKC (+44.70 points)

.
The positive performance of these companies played a significant role in preventing a major decline in KMI-30.

Major draggers of KMI-30

On the other hand, a few major companies had a negative impact on the index.
These include:

• ENGRO (-261.45 points)
• FFC (-123.68 points)
• LUCK (-70.24 points)
• SYS (-55.09 points)
• MARI (-47.07 points)

.

Market still strong on a yearly basis

Although today was a negative day, the performance of PSX on a yearly basis is still impressive.

KSE-100

• FYTD Return: 41.44%
• CYTD Return: 2.09%

KMI-30

• FYTD Return: 37.81%

• CYTD Return: 2.51%

These figures show that despite the short-term correction, the Pakistani stock market has provided significant returns to investors over the past one year.

What are investors’ eyes on?

According to market experts, the following factors will determine the direction of the PSX in the coming days:

• State Bank of Pakistan’s policy
• Inflation data
• Corporate financial results
• Global oil prices
• Pakistan’s economic situation
• Foreign investment trend

If economic indicators remain positive, the market may return to bullish momentum.

Analysis

Tuesday’s session was a reminder that profit-taking is a natural process after a sustained rally in the stock market. Although the KSE-100 index fell by about 779 points, the strong performance of the KMI-30 proved that investors still have faith in fundamentally strong companies.
Buying in the energy sector, strong annual profits and resistance from Sharia-compliant stocks indicate that long-term investor confidence in the market remains intact. In the coming days, investors will be closely watching economic announcements and financial results of companies, which could determine the future direction of the PSX.