Bulls Triumph Over Bears at KSE-100 with a 121-Point Gain

Bulls Triumph Over Bears at KSE-100 with a 121-Point Gain

Karachi, December 13, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a strong session on Friday, as bulls successfully overcame bears, resulting in a 121-point gain.

The KSE-100 index closed at 114,302 points, reaching a new high compared to the previous day’s closing of 114,181 points. Analysts at Topline Securities Limited noted that the session remained range-bound, with the KSE-100 index oscillating between an intraday high of 992 points and a significant intraday low of -1,571 points before settling at the 114,302 mark, representing a modest increase of 0.11%.

A key pressure point during the session was the banking sector, which collectively pulled the KSE-100 index down by 860 points. Prominent banks, including UBL, MEBL, BAHL, HBL, and BAFL, witnessed declines. This downward trend was attributed to uncertainties surrounding the government’s tax policies. A committee formed earlier this week finalized recommendations to amend the ADR-based tax regime introduced under the Finance Act 2022. The act had imposed higher tax rates on banks with an Advances to Deposit Ratio (ADR) below 50%, aiming to boost commercial lending and discourage reliance on passive income. These developments weighed heavily on investor sentiment in the banking sector.

In contrast, investor interest surged in the oil and gas sector, providing much-needed support to the KSE-100 index. MARI, PSO, OGDC, and PPL emerged as the top traded companies in terms of value, with traded volumes of Rs 5.29 billion, Rs 3.89 billion, Rs 3.73 billion, and Rs 2.71 billion, respectively.

Overall, the day’s trading activity saw a total volume of 1.11 billion shares, with a cumulative value of Rs 59.5 billion. Despite the range-bound nature of the session, the KSE-100 index’s resilience highlighted the market’s ability to recover from intraday losses and close on a positive note.

The KSE-100 index’s performance reflects the ongoing tug-of-war between bullish optimism and bearish pressures, with market participants closely monitoring economic and policy developments that could influence future trends.