Equity market ends down amid positive investment reports

Equity market ends down amid positive investment reports

KARACHI – The Karachi Stock Exchange (KSE) witnessed a downward trend on Friday, closing at 40,486 points, down by 20 points (-0.1 percent Day-on-Day), despite positive reports of investment deals emerging from the visit of the Saudi Crown Prince.

The benchmark KSE-100 index slipped from 40,507 points, reflecting a cautious market sentiment influenced by the recent bomb explosion in Kashmir.

Analysts at Arif Habib Limited noted that despite favorable macro-level developments, including the much-anticipated visit of the Saudi Crown Prince and the signing of investment pacts, the market succumbed to the potential negative impact of the recent bomb explosion in Kashmir. The unfortunate incident in the region affected investor sentiment, leading to a subdued buying interest.

Major trading volumes were observed in the Banks sector, totaling 16 million shares, followed by the Chemical sector with 15 million shares and the Cement sector with 8 million shares. LOTCHEM emerged as the volume leader, although its stock price experienced a decline. The Cement sector showed signs of recovery, attributed to the overnight decrease in coal prices.

The market performance was influenced by various sectors, with Banks contributing positively with 58 points, Exploration & Production (E&P) adding 14 points, Oil & Gas Marketing Companies (O&GMCs) subtracting 27 points, Fertilizer deducting 21 points, and Power sector decreasing by 17 points.

Total trading volumes witnessed a decline from 124 million shares to 93 million shares, marking a 25 percent Day-on-Day decrease. The average traded value also saw a 25 percent decline, reaching $34 million compared to the previous day’s $45 million.

Several stocks significantly influenced the trading volumes, with LOTCHEM, BOP, SNBL, STPL, and PREMA collectively forming 32 percent of the total volumes.

Stocks making positive contributions to the index included UBL (+34 points), BAFL (+14 points), PPL (+12 points), EFERT (+9 points), and NBP (+8 points). Conversely, stocks contributing negatively included HUBC (-22 points), PSO (-21 points), FFC (-18 points), DAWH (-17 points), and HMB (-9 points).

While the market grappled with external uncertainties, including geopolitical events, the resilience of certain sectors and stocks demonstrated the dynamic nature of the Pakistani equity market. The cautious investor sentiment, driven by both positive and negative developments, underscores the need for market participants to remain vigilant in navigating the ever-changing landscape. As the market adjusts to recent events, traders and investors alike will closely monitor future developments for potential impacts on market dynamics.