KSE-100 index declines by 13 points in narrow band trading

KSE-100 index declines by 13 points in narrow band trading

The Pakistan Stock Exchange (PSX) witnessed a modest decline on Wednesday, with the benchmark KSE-100 index closing down by 13 points, ending the day at 38,023 points compared to the previous session.

Market analysts from Arif Habib Limited noted that the market traded within a narrow band throughout the day. Initially, there was an uptick of 83 points, but sectors such as Banks, Cement, Steel, and Fertilizers faced selling pressure, leading to a decline of 181 points. However, a late-stage recovery helped mitigate losses, resulting in the final tally of -13 points.

The Cement sector observed a rise in prices, driven by unconfirmed reports of an increase in cement prices in the Northern region. Conversely, Banks remained subdued during the trading session.

In the Exploration and Production (E&P) sector, trading volumes increased, although price performance remained relatively stable. However, the Fertilizer sector experienced a decline in prices due to reports of the government importing Urea, exacerbating concerns for local manufacturers. Steel sector scrips, which initially showed improvement, saw a partial reversal of gains in the last half-hour of trading.

Key sectors contributing to the market performance included E&P (+77 points), Cement (+46 points), and Food (+14 points). Conversely, Banks (-91 points), Pharma (-15 points), and Chemical (-13 points) weighed on the index.

Trading volumes saw a modest increase from 144.5 million shares to 153.3 million shares, marking a 6 percent day-on-day rise. However, the average traded value declined by 5 percent to US$26.3 million compared to US$27.7 million in the previous session.

Significant contributors to trading volumes included UNITYR1, WTL, FCCL, KEL, and UNITY, collectively forming 62 percent of the total volumes.

Stocks that made positive contributions to the index included OGDC (+37 points), POL (+27 points), LUCK (+19 points), PSEL (+16 points), and PPL (+14 points). Conversely, stocks such as HBL (-31 points), MCB (-27 points), UBL (-14 points), FFC (-12 points), and SEARL (-11 points) weighed negatively on the index.

The market sentiment remains cautious amidst global economic uncertainties and domestic challenges. Investors are closely monitoring developments in key sectors and await further clarity on government policies and economic indicators for future market direction.