Karachi, September 27, 2024 – The Pakistan Stock Exchange (PSX) faced another challenging day on Friday, as the benchmark KSE-100 index dropped by 366 points, continuing its downward trend.
The index closed at 81,292 points, down from the previous day’s closing of 81,658 points, marking a decline of 0.45%. The market struggled to find positive momentum as selling pressures from foreign corporates weighed heavily on investor sentiment.
According to analysts at Topline Securities Limited, the KSE-100 index remained under pressure throughout the trading session, mainly due to persistent selling by foreign institutional investors. “The index has been in decline over the last couple of sessions, with foreign corporates offloading shares, which has dampened local market sentiment,” they said.
Despite the overall market pressure, several key stocks made positive contributions to the index. Companies like Fauji Fertilizer Company (FFC), Hub Power Company (HUBC), Engro Fertilizers (EFERT), Fauji Fertilizer Bin Qasim Limited (FFBL), and Lucky Cement (LUCK) collectively added 220 points to the index. Their gains, however, were not enough to offset the losses in other major stocks.
On the downside, Mari Petroleum (MARI), United Bank Limited (UBL), MCB Bank, National Bank of Pakistan (NBP), and Engro Corporation (ENGRO) lost value, dragging the index down by 279 points. These blue-chip stocks faced selling pressures, contributing significantly to the overall decline.
Trading activity was moderately active, with a total traded volume of 337 million shares, valued at Rs 12.83 billion. The volume leader for the day was K-Electric Limited (KEL), which saw 50 million shares changing hands, reflecting ongoing investor interest in the utility sector despite broader market challenges.
The downward trend in the KSE-100 index has raised concerns among investors, who are closely monitoring global and local factors that could influence market performance. Analysts pointed out that while corporate earnings reports are being watched, external factors like geopolitical developments, fluctuating global commodity prices, and economic conditions in key trading partners are also playing a role in shaping market sentiment.
The PSX has been navigating turbulent waters in recent weeks, with volatility driven by both domestic and international forces. The rupee’s fluctuations, inflationary pressures, and political uncertainties have all contributed to investor caution, as market participants await clarity on Pakistan’s economic direction.
Looking ahead, market analysts predict continued volatility but remain hopeful that positive corporate results and potential stabilization of the rupee could help lift investor confidence in the coming weeks. However, they warned that global market dynamics will remain a crucial factor in determining the KSE-100’s future performance.
