PSX Closing Bell: Cut the Deal

October 11, 2024 (MLN): Pakistan stocks sank during the early trading on Friday following the government’s termination of power purchase contracts with some Independent Power Producers (IPPs).

The benchmark KSE-100 Index fell as much as 0.79% before paring losses to end the session largely flat at 85,483.40 (+30.18pts / +0.04%).

The IPP and index heavyweight Hub Power (PSX: HUBC) said it has decided to initiate a Negotiated Settlement Agreement regarding the accelerated expiry of its 1,292 MW power plant, effective October 01, 2024.

These agreements were originally scheduled to expire in March 2027. According to the terms of the agreement, the Government of Pakistan (GoP) and the Central Power Purchasing Agency-Guarantee (CPPAG) have agreed to settle the company's outstanding receivables up till October 01, 2024.

Lalpir Power (PSX: LPL) also said it will place the proposed terms for early termination of company’s agreements with the government before the shareholders for approval.

Read: Early termination of IPP contracts saves Pakistan Rs411bn: Leghari

The index traded in a range of 975.73 points showing an intraday high of 85,750.18 (+296.96) and a low of 84,774.45 (-678.77) points.

The total volume of the KSE-100 Index was 295.02 million shares.

Of the 100 index companies 46 closed up, 50 closed down, while 4 were unchanged.

Top gainers during the day were ATLH (+10.00%), PTC (+8.13%), PIOC (+7.50%), PSO (+5.16%), and ATRL (+3.88%).

On the other hand, top losers were KOSM (-11.84%), HUBC (-5.17%), YOUW (-4.75%), ABL (-3.39%), and LUCK (-3.28%).

In terms of index-point contributions, companies that propped up the index were PSO (+68.72pts), FFC (+67.56pts), EFERT (+62.45pts), PIOC (+46.92pts), and UBL (+30.79pts).

Meanwhile, companies that dragged the index lower were HUBC (-181.94pts), LUCK (-80.84pts), HBL (-29.93pts), TRG (-17.14pts), and SRVI (-16.94pts).

Sector-wise, KSE-100 Index was supported by Oil & Gas Marketing Companies (+100.41pts), Fertilizer (+100.06pts), Commercial Banks (+62.87pts), Cement (+32.27pts), and Food & Personal Care Products (+22.94pts).

While the index was let down by Power Generation & Distribution (-199.97pts), Oil & Gas Exploration Companies (-38.31pts), Pharmaceuticals (-21.99pts), Leather & Tanneries (-16.94pts), and Chemical (-16.67pts).

In the broader market, the All-Share Index closed at 54,537.21 with a net gain of 20.89 points or 0.04%.

Total market volume was 560.74 million shares compared to 503.75m from the previous session while traded value was recorded at Rs26.12 billion showing a decrease of Rs1.79bn.

There were 277,429 trades reported in 434 companies with 130 closing up, 250 closing down, and 54 remaining unchanged.

To note, the KSE-100 has gained 7,038 points or 8.97% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 23,032 points, equivalent to 36.88%.

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