- The KSE-100 index drops sharply, ending at 112,030.36 points.
- The reference index decreases 1,489.96 points, a drop of -1.31%.
- The market reaches an intrajournnal minimum of 111,434.95 points, losing the momentum.
The Bearish feeling persisted on the stock market on Tuesday, investors closely monitoring the profits of companies and the recent announcement of monetary policy.
The KSE-100 index of Benchmark Kse-100 of Pakistan Stock Exchange (PSX) ended at 112,030.36, recording a net drop of 1,489.96 points or -1.31% compared to the fence of the Previous session of 113,520.32. During the session, the index climbed to an intraday summit of 113,644.71 but also touched a hollow of 111,434.95.
“The profits season has started and the actions are reactive to profits and payments. Disappointment on payments maintained the oil sector under pressure yesterday and caused a wider market for the market,” said the CEO of Ismail Iqbal Securities, Ahfaz Mustafa.
“This pressure continued today when people have become cautious before profits,” he added.
The petroleum sector was faced with significant pressures after the disappointing profits on Monday, which weighed on the broader feeling of the market.
Monday, Mari Energies Limited (Mari) declared a drop of 19% in annual slip of profitability for H1FY25, displaying RS30,396 million (BPA: RS25.32), against RS37 505 million (BPA: RS31.24) in H1FY24 .
The quarterly profit of the company also decreased by 39% in annual sliding to Rs11168 million (BPA: RS9.30), driven by an increase of 115% in annual shift in operating costs and an additional fee of 15% on the Tête de Tête de lease Mari D&P, from November 2024.
One day earlier, Pakistan State Bank (SBP) announced a decrease of 100 points in its key policy rate, reducing it to 12%. This marks the sixth drop in consecutive rates since June 2024, because the country aims to revive economic activity and the feeling of businesses in the midst of inflation.
The Governor of SBP, Jameel Ahmed, noted that inflation should relax in January, although central inflation remains high. The central bank projected annual inflation to an average between 5.5% and 7.5% for the financial year ending in June 2025.
In an effort to protect consumers from the increase in gas prices, the government has reassured 82 billion rupees from the profits of state -owned companies belonging to the state. These funds, initially intended to reduce circular debt, will now be used to prevent a gas price hike for ordinary consumers.
“We had allocated 100 billion rupees of companies’ profits to reduce circular debt,” said Musadik Malik Minister of Petroleum. “Now, 82 billion rupees will be used to ensure that ordinary consumers are not overwhelmed by higher public service costs.”
The market launched the week on a negative note, the KSE-100 index plunging 1,360.16 points, or 1.18%, to end at 113,520.32.
The index experienced a summit of 115,596.87 and a minimum of 113,482.23 during the session, driven by weak -based results and a careful feeling before the announcement of monetary policy.
While the profits season continues, market players are expected to remain focused on business results and payment expectations.