KARACHI: Friday witnessed a session of trading within a limited range at the Pakistan Stock Exchange (PSX), where investor sentiment remained subdued due to the depreciation of the Pakistani rupee and a pessimistic economic forecast.
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KSE-100 Index Starts Strong but Reverses Gains, Stocks Decline
Even though the PSX trading day began on a positive trajectory, with the KSE-100 index reaching an intra-day peak of 47,853.55 points similar to the favorable trend of the preceding day, the stocks swiftly reversed their course and started declining.
Multiple Factors Trigger Stock Decline, Mid-Session Support Expected
The decrease can be attributed to factors like dwindling exports, surging inflation, a depreciating rupee, and escalating power tariffs.
Anticipating a forthcoming rise in Pakistan’s weight to 2.93% in the MSCI FM100 index next month, there was a degree of mid-session support.
Index Falls Despite Mid-Session Support, Settles with Losses
Nonetheless, this support wasn’t enough to drive the index higher, and it swiftly declined to reach an intra-day nadir of 47,570.31 points. Eventually, the market settled around that range, incurring certain losses at PSX.
PSX Investor’s Concerns and Economic Outlook Drive Stocks Down, Mid-Session Support Noted
“Amid worries among investors regarding the feeble rupee and a gloomy economic projection, stocks concluded the session with a decline,” commented Ahsan Mehanti, the CEO of Arif Habib Commodities. He further noted that a degree of mid-session support stemmed from the anticipation of MSCI boosting Pakistan’s weight within its FM100 Index.
Bearish Market Close: KSE-100 Index Ends Down 0.17% at 47,671.22
“The PSX market’s bearish closure was instigated by catalysts including declining exports, concerns about inflation due to rising power tariffs, and the weakening rupee.”
By the end of the trading session, the benchmark KSE-100 index recorded a dip of 79.55 points, equivalent to 0.17%, and stabilized at 47,671.22.
Steady Trading Day: KSE-100 Index Closes at 47,671 Amid Range-bound Session
According to Topline Securities, the stock exchange witnessed a session characterized by trading within a limited range, with the KSE-100 index fluctuating between an intra-day peak of 103 points and an intra-day trough of -181 points. Ultimately, the index found its conclusion at 47,671.
“It was highlighted that Habib Metropolitan Bank, Engro Corporation, Meezan Bank, Standard Chartered Bank, and Fauji Fertiliser Company collectively made a significant positive impact of 89 points on the index,” the statement conveyed.
PSX Stocks Under Pressure: Topline Reports Mixed Performance, Market Sees Weekly Decline
Conversely, Oil and Gas Development Company, TRG Pakistan, Pakistan Petroleum, Bank AL Habib, and Unilever Pakistan Foods experienced value depreciation, exerting downward pressure on the index by 89 points, as per Topline’s information.
According to a report by Arif Habib Limited (AHL), the PSX recorded its third successive week-on-week decrease (-1.14%) following its peak at 49,000 points.
“The support for the KSE-100 index persists within the 46,000 to 47,000 range, and it is within this range that we are envisioning a bullish reversal,” the statement indicated while noting that Friday’s session was marked by subdued activity.
Bank Stocks Rise, Volatile Session Ends with KSE-100 Index at 47,671
Habib Metropolitan Bank recorded an ascent of (+7.49%), and Standard Chartered Bank gained (+7.5%), while Oil and Gas Development Company experienced a descent of (-1.51%), TRG Pakistan dipped (-2.52%), and Pakistan Petroleum decreased (-1.01%).
Muhammed Waqar Iqbal, an analyst from JS Global, remarked that the KSE-100 encountered a session marked by volatility, concluding at 47,671 points, exhibiting an 80-point decrease from the previous day.
“Looking ahead, we advise investors to view any declines as favorable chances to purchase stocks within the construction and export-oriented sectors,” the analyst further suggested.
Total trading volumes declined, reaching 192.04 million shares at PSX in contrast to Thursday’s count of 251.7 million. The total value of shares traded for the day amounted to Rs 6.5 billion.
Trading involved shares from a total of 329 companies. By the end of the session, 100 stocks concluded with gains, 204 experienced declines, and 25 maintained an unchanged status.
WorldCall Telecom Leads in Volume, Foreign Investors Sell Off Shares
WorldCall Telecom took the lead in trading volume, engaging in transactions involving 17.97 million shares. The company’s value increased by Rs0.01, leading to a closing price of Rs1.25. Following closely, JS Bank registered 16.1 million shares in trading, witnessing a gain of Rs0.21, and concluding at Rs6.20. Meanwhile, BankIslami Pakistan was involved in trading 12.5 million shares, experiencing a loss of Rs0.57 and closing at Rs14.85.
As per the NCCPL, foreign investors ended up as net sellers, offloading shares valued at Rs25.7 million.