KARACHI: The Pakistan Stock Exchange (PSX) experienced a tumultuous trading day on Thursday, with the benchmark KSE-100 index closing down by 28 points, settling at 38,244 points as compared to the previous day’s closing figure of 38,272 points.
This decline came on the heels of a rollercoaster ride, during which the index touched a low of 38,780 points, marking a substantial drop of approximately 500 points. Despite the day’s erratic nature, the index managed to recover and closed near its previous day’s level.
Financial analysts from Arif Habib Limited noted that the market exhibited signs of nervousness throughout the trading session. At certain points during the day, panic-induced selling led to a significant dip in the index, but investors’ sentiment appeared to stabilize as the trading day progressed. While various sectors experienced ups and downs, the banking sector attracted notable buying interest, with Bank of Punjab (BOP) taking the lead by trading 10 million shares, contributing to a total sector volume of 14.6 million shares. Technology stocks also garnered attention, particularly NETSOL, which was recently included in eligible futures contracts and witnessed an upper circuit surge in its stock price, closing at that level.
However, the day was not without its challenges, as selling pressure was observed in the banking and Exploration and Production (E&P) sectors, causing some concerns among investors. These sectors were among the primary contributors to the overall performance of the market on Thursday, with the E&P sector losing 23 points and the banking sector shedding 13 points. Additionally, the chemical sector dropped by 13 points, while the fertilizer and automobile sectors each contributed losses of 9 and 6 points, respectively. On a positive note, the tobacco and cement sectors added 25 and 21 points, respectively, to the market’s performance.
Market activity saw a slight uptick, with trading volumes increasing from 92.7 million shares the previous day to 104.2 million shares, representing a 12 percent day-over-day increase. Similarly, the average traded value rose from $33 million to $38.7 million, marking a 17 percent day-over-day increase. Notably, several stocks played a significant role in driving the day’s trading volumes, including BOP, TRG, KEL, UNITY, and PEL, which collectively accounted for 38 percent of the total trading volumes.
Investors and market participants closely monitored these developments, with the fluctuating sentiment and trading activity reflecting the ongoing economic and geopolitical uncertainties that have influenced the stock market in recent times. While the KSE-100 index ended the day in negative territory, the market’s resilience and ability to recover from significant intraday declines underscored the resilience of Pakistan’s stock market, even in the face of challenging conditions. Market experts and investors remain watchful, prepared for further developments that may impact the trajectory of the PSX in the days to come.
