Karachi, October 11, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) showed resilience on Friday, managing to recover from a day of negativity to end with a modest gain of 30 points. The KSE-100 index closed at 85,483 points, up from the previous day’s closing of 85,453 points.
Despite the overall bearish sentiment prevailing throughout the trading session, which saw the KSE-100 index trading in the negative zone and hitting an intraday low of 679 points, a late-session rally helped lift the market. Analysts at Topline Securities Limited attributed this shift in sentiment to the ongoing negotiations with Independent Power Producers (IPPs). Reports indicate that five IPPs have agreed to early termination of their Power Purchase Agreements (PPA), which is seen as a potential positive development for the energy sector.
During the trading hours, the KSE-100 index fluctuated significantly, reflecting investor caution and volatility. However, as the closing hours approached, a recovery was observed, allowing the index to finish slightly above the previous day’s closing level, representing a 0.04% increase.
The major contributors to the KSE-100 index’s positive performance included stocks such as Pakistan State Oil (PSO), Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Pak Oman Investment Company (PIOC), and United Bank Limited (UBL). Collectively, these stocks contributed a notable 276 points to the index. Conversely, some heavyweights, including Hub Power Company (HUBC), Lucky Cement (LUCK), Habib Bank Limited (HBL), TRG Pakistan, and Service Industries Limited (SRVI), experienced declines, negatively impacting the index by 327 points.
The day’s trading volume stood at a substantial 560 million shares, with a total value of approximately Rs 26 billion. HUBC emerged as the volume leader for the day, trading 58 million shares, indicating a robust interest in this particular stock despite its overall decline.
Market experts noted that while the recovery is a positive sign, the KSE-100 index remains sensitive to external economic factors and domestic developments. Investors are encouraged to remain vigilant as ongoing negotiations with IPPs and broader economic indicators could influence market trends in the coming days.
As the PSX continues to navigate through periods of volatility, analysts emphasize the importance of strategic investments and market awareness, particularly in the energy sector, which plays a critical role in shaping the future of the Pakistani economy. The overall sentiment reflects cautious optimism as traders look ahead to potential policy changes and economic reforms that could impact market dynamics.