KARACHI: The Pakistan Stock Exchange (PSX) experienced a day of selling pressure on Wednesday, with the benchmark KSE-100 index closing at 40,607 points, marking a decline of 17 points from the previous day’s close of 40,624 points.
Analysts attribute the market fluctuations to the upcoming announcement of the monetary policy by the central bank.
Investors displayed a sense of nervousness as the market oscillated between positive and negative territory, ranging from +153 points to -94 points throughout the day. The total volume of shares traded stood at 125 million, indicating a cautious approach among market participants.
Analysts at Arif Habib Limited noted that the impending Monetary Policy announcement, scheduled for the following day, contributed to the overall uncertainty in the market. As a result, selling pressure was observed across various sectors, including Food, Technology, Cement, Steel, and Chemicals.
Within the banking sector, both Habib Bank Limited (HBL) and United Bank Limited (UBL) experienced selling pressure and traded in the red towards the end of the session. The fertilizer sector also faced negative sentiment, with Fauji Fertilizer Bin Qasim Limited (FFBL) failing to garner support despite posting a decent result.
The sectors that had a notable impact on the market’s performance included Food (+22 points), Fertilizer (-27 points), Tobacco (-21 points), Cement (-13 points), Banks (-13 points), and Textile (-9 points).
The day saw a decline in trading volumes, dropping from 155 million shares to 125 million shares, reflecting a 19 percent day-on-day decrease. Additionally, the average traded value decreased by 28 percent to reach $35.8 million, down from $49.5 million.
Stocks that significantly contributed to the volumes included Fauji Foods Limited (FFL), Pakistan International Airlines Corporation (PIAA), Sazgar Engineering Works Limited (STPL), D.G. Khan Cement Company Limited (DCL), and HUM Network Limited (HUMNL), collectively forming 29 percent of the total volumes.
On the positive side, contributing to the market performance were stocks like NESTLE (+19 points), Dawood Hercules Corporation Limited (DAWH, +16 points), MCB Bank Limited (MCB, +10 points), Pakistan Petroleum Limited (PPL, +9 points), and HUMNL (+8 points). Conversely, stocks that had a negative impact included Pakistan Telecommunication Company Limited (PAKT, -21 points), Fauji Fertilizer Company Limited (FFC, -19 points), Engro Corporation Limited (ENGRO, -18 points), FFBL (-10 points), and Kohinoor Textile Mills Limited (KTML, -9 points).
As investors await the announcement of the monetary policy, the market is likely to remain sensitive to external factors, and further fluctuations may occur in the coming sessions.
