Karachi, January 8, 2024 – The Pakistan Stock Exchange (PSX) witnessed a significant downturn on Monday as the benchmark KSE-100 index lost 278 points, closing at 64,237 points, in response to the escalating political noise surrounding the upcoming general elections.
Analysts at Topline Securities reported that the day’s trading saw Pakistan equities fluctuating in both directions. Initially, the KSE-100 index reached an intraday high at 65,069 levels, a gain of 555 points (up 0.85 percent). However, profit-taking activities at this level led to a reversal of fortune, causing the benchmark index to lose ground and ultimately settle at 64,237 levels, reflecting a decrease of 278 points (down 0.43 percent). The intraday low was recorded at 64,184 levels, down 331 points (0.51 percent).
Ali Najib, VP, Senior Dealer – Equities, at Topline Securities, highlighted the impact of the increasing political noise related to the upcoming election on investor sentiment. Investors chose to reduce their equity positions by booking profits in selective stocks of Banks, Exploration & Production (E&P), Technology, and Oil Marketing Companies (OMC). Notably, UBL, PPL, OGDC, TRG, and PSO collectively lost 200 points. Conversely, ENGRO, EFERT, and DAWH added 269 points, driven by renewed buying interest following the release of a Topline Report on ENGRO over the weekend, indicating a target price of Rs. 490 by December 2024.
The market activity was marked by the trading of over 483 million shares, with a total value of Rs 12.7 billion. K-Electric Limited (KEL) led the volumes chart with the trading of over 168.8 million shares.
The political uncertainty surrounding the upcoming general elections seems to have taken center stage, influencing investor decisions and triggering a wave of profit-taking. This shift in sentiment resulted in a mixed performance across various sectors, with some stocks experiencing losses while others saw gains.
Investors closely monitored the developments in the banking, E&P, tech, and OMC sectors, with UBL, PPL, OGDC, TRG, and PSO being adversely affected. On the other hand, ENGRO, EFERT, and DAWH emerged as winners, benefitting from renewed interest following positive reports and target price projections.
The market’s resilience in the face of political noise remains to be seen in the coming days as investors continue to assess the evolving situation and adjust their portfolios accordingly. The volume and value of trades suggest active participation, indicating that market players are closely watching for any developments that may impact their investment strategies in the run-up to the elections.
