Karachi, February 13, 2024 – The Pakistan Stock Exchange (PSX) experienced a rollercoaster ride on Tuesday as the benchmark KSE-100 index rebounded, closing with a gain of 162 points after grappling with a massive intraday fall.
The index concluded the day at 61,227 points, showing resilience in the face of market uncertainties.
Maaz Mulla, Senior Trader at Topline Securities Limited, commented on the day’s trading activity, noting that the KSE-100 index swung in both directions as investors grappled with the uncertainty surrounding the formation of a new government. The market displayed notable volatility, making an intraday low of 1,452.14 points and an intraday high of 589.34 points before settling at 61,226.92, up by 161.61 points from the previous day’s close of 61,065 points.
The day began on a negative note, with the index facing headwinds primarily from the Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), both opening at lower lock. This was attributed to news suggesting that the International Monetary Fund (IMF) was not aligned with the energy ministry’s tariff rationalization and circular debt management plan. However, a second-half recovery ensued, leading both stocks to manage to open their respective lower locks to close at OGDC (-7.47%) and PPL (-6.25%).
The cement sector, on the other hand, witnessed a resurgence during the second half of the day. Key players, including Pioneer Cement Limited (PIOC), Maple Leaf Cement Factory Limited (MLCF), and Fauji Cement Company Limited (FCCL), registered gains of 3.19%, 3.09%, and 2.98%, respectively, contributing to the overall positive close.
In the banking sector, Allied Bank Limited (ABL) announced its 2023 results, reporting an Earnings Per Share (EPS) of Rs 36.07 and a cash payout of Rs 4 per share. This positive financial update from the banking sector likely played a role in boosting investor confidence during the volatile trading session.
Despite the market turbulence, trading activity remained robust, with over 435 million shares changing hands at the bourse, amounting to a total value of Rs. 12.1 billion. K-Electric Limited (KEL) dominated the volumes chart, with a trading volume surpassing 65.8 million shares.
The day’s events highlight the dynamic nature of the stock market and the impact of external factors on investor sentiment. The resilience displayed by the KSE-100 index reflects the adaptability of market participants in navigating through uncertainties. As the political and economic landscape evolves, market participants will continue to monitor developments closely, adjusting their strategies to capitalize on opportunities and mitigate risks in the ever-changing market environment.
