Karachi, September 5, 2023 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) faced a setback on Tuesday, losing 216 points amid mixed trading sentiment throughout the day.
The stock market closed at 45,491 points, down from the previous day’s closing level of 45,707 points, reflecting a decline in investor confidence.
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Analysts at Topline Securities noted that Pakistan’s equities market experienced a day of mixed vibes, characterized by relatively low trading volumes.
The trading day began on a positive note as Bloomberg quoted the Caretaker Prime Minister’s statement, suggesting that Pakistan could potentially attract $25 billion in investments from Gulf Cooperation Council (GCC) countries in the near future. This optimistic news initially boosted investor sentiment.
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The benchmark KSE-100 index reached an intraday high at 45,951 points, gaining 243 points (0.53%). However, as the day progressed, some investors opted to take profits at these higher levels. This profit-taking activity pushed the KSE-100 index to an intraday low at 45,417 points, marking a decline of 290 points (0.63%) before settling the day at 45,492 points, down 216 points (0.47%).
Key sectors contributing negatively to the index’s performance included banks, exploration and production (E&P), and power. Major laggards in the market included BAHL, OGDC, PPL, HUBC, PPL, and UBL, collectively shedding 137 points from the index.
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Another significant development during the day was the appreciation of the Pakistani Rupee against the US Dollar in the open market. The local currency gained Rs. 8, appreciating by 2.43% from the previous day’s closing rate of Rs. 328. This appreciation is attributed to recent government measures aimed at curbing US Dollar smuggling. However, the local currency experienced a loss of Rs. 1.46 (0.48%) in interbank trading, closing at 307.10 against the US Dollar.
The day’s trading volume amounted to 200 million shares, with a total value of Rs. 8.99 billion. WTL led the volume chart, with 16.3 million shares traded during the trading session.
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Overall, the mixed trading sentiment, profit-taking activities, and fluctuations in the currency market contributed to the KSE-100 index’s decline on this particular trading day. Investors remain cautious amid evolving economic and geopolitical factors impacting the Pakistani stock market.
