KARACHI – The equity market in Pakistan witnessed positive momentum on Wednesday, driven by encouraging financial results declared by the corporate sector.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 40,279 points, reflecting an increase of 322 points from the previous close at 39,957 points.
Analysts from Arif Habib Limited noted that the market experienced a rebound after facing consecutive declines in the previous sessions. The day’s trading began similarly to the preceding session, with the market opening at -13 points and subsequently dipping further, resulting in a loss of 268 points.
However, a turnaround occurred as better-than-expected financial results from major banks, including United Bank Limited (UBL), MCB Bank, and Habib Bank Limited (HBL), encouraged investors to shift away from negativity and invest in these stocks. Following the announcement of results, these banks witnessed both increased trading volumes and a surge in stock prices.
Oil and Gas Development Company (OGDC), among Exploration and Production (E&P) scrips, also made a significant contribution to the index, registering a growth of 2 percent.
The market saw substantial trading volumes, with Pakistan International Bulk Terminal Limited (PIBTL) leading the way with 17.8 million shares, followed by Bank of Punjab (BOP) with a volume of 7.5 million shares and a price increase of 1.8 percent.
Various sectors played a pivotal role in driving the market’s performance. Banks emerged as the leading contributor with an increase of 180 points, followed by E&P (+93 points), Fertilizer (+70 points), Cement (+28 points), and Power (-19 points).
The trading day witnessed a notable increase in volumes, rising from 94 million shares to 132 million shares, marking a 40 percent day-on-day increase. Additionally, the average traded value experienced a significant uptick, surging by 73 percent to reach US$48 million, compared to the previous day’s figure of US$28 million.
Stocks that made substantial contributions to the trading volumes included PIBTL, BOP, K-Electric (KEL), Lotte Chemical (LOTCEM), and UBL, collectively forming 32 percent of the total volumes.
Positively contributing stocks included UBL (+78 points), OGDC (+47 points), Engro Corporation (+32 points), HBL (+31 points), and Bank Al-Habib Limited (BAHL) (+25 points).
On the flip side, stocks that negatively impacted the index included Kot Addu Power Company (KAPCO) (-25 points), PIBTL (-15 points), MCB Bank (-6 points), ICI Pakistan Limited (-6 points), and KEL (-4 points).
The positive performance in the equity market underscores the resilience of the Pakistani stock exchange, highlighting the role of corporate financial results in shaping investor sentiment and market dynamics. As the market responds to various economic indicators, investors remain vigilant for further opportunities and challenges in the evolving financial landscape.
