The equity market of Pakistan Stock Exchange (PSX) experienced a day of mixed trading activities, marked by buying and selling patterns, following the news of Fitch Ratings downgrading Pakistan’s rating. The benchmark KSE-100 index closed at 40,264 points, exhibiting a slight decline of 24 points compared to the previous day’s closing at 40,289 points.
The day began on a positive note for the KSE-100 index, opening with a gain of 17 points and a trading volume of 0.5 million shares. However, the first session concluded with a downturn of 102 points, accompanied by a traded volume of 67.6 million shares. Despite the initial positivity, sectors such as banking, cement, steel, oil marketing companies (OMCs), exploration and production (E&P), and automobiles remained in the negative territory throughout the day.
The news of Fitch downgrading Pakistan’s credit rating from B to B negative had a notable impact on investor sentiment, contributing to a decline in buying enthusiasm during the second session. Additionally, the mixed reaction to financial results announced by International Steels Limited (ISL) further influenced the market dynamics.
While the traded volume in ISL increased towards the end of the day, the scrip closed on a negative note, highlighting the cautious approach adopted by investors. Among banking sector stocks, MCB ended below its opening level, and HBL lacked the momentum seen in previous sessions.
Within the banking sector, Bank of Punjab (BOP) led the volumes table with 34.9 million shares traded, and BOP realized a volume of 25 million shares. The overall performance of sectors contributing to the index included positive contributions from banks (+60 points), fertilizer (+41 points), and power (+7 points). On the flip side, negative contributions came from E&P (-40 points), oil and gas marketing companies (O&GMCs) (-35 points), cement (-17 points), and automobiles (-10 points).
The total traded volume saw a decline from 245.8 million shares to 155.9 million shares, representing a decrease of 37 percent day-on-day (DoD). The average traded value also witnessed a decline of 35 percent, reaching $46.5 million, compared to the previous day’s $70.9 million.
Notable stocks contributing significantly to the overall traded volumes included Bank of Punjab (BOP), Pakistan International Bulk Terminal Limited (PIBTL), Fauji Fertilizer Limited (FFL), Unity Foods Limited (UNITY), and TRG Pakistan Limited (TRG), collectively forming 44 percent of the total traded volumes.
As the PSX navigates through market fluctuations and external factors, investor sentiment remains sensitive to global economic conditions, credit rating changes, and corporate financial results. The cautious trading environment underscores the need for strategic decision-making and risk management among market participants in the coming sessions.
