KSE-100 Index Loses 83 Points on FY24 Closing

KSE-100 Index Loses 83 Points on FY24 Closing

Karachi, June 28, 2024 – The Pakistan Stock Exchange (PSX) witnessed a slight downturn on the final trading day of fiscal year 2023-24, as the benchmark KSE-100 index closed 83 points lower.

Ending at 78,445 points, down from the previous day’s close of 78,528 points, the index reflected a minor decline of -0.11%.

Analysts from Topline Securities noted that the trading session remained range-bound, characterized by fluctuations throughout the day. The KSE-100 index oscillated between an intraday high of 78,661 points and a low of 78,216 points before settling at its closing mark. Despite the overall negative sentiment, certain stocks made significant contributions to the index’s movement.

FABL, MEBL, PSEL, NESTLE, and PTC emerged as the major contributors, collectively adding 155 points to mitigate some of the losses. Conversely, stocks such as MCB, UBL, OGDC, HUBC, and FFC experienced declines, collectively exerting downward pressure on the index by -310 points.

The spotlight of the trading day was on PTC, which led in trading volume with 71 million shares changing hands. PTC’s prominence was bolstered by the announcement that its Board of Directors had secured approval from the International Finance Corporation (IFC) for debt financing up to $400 million. This funding is earmarked for the acquisition of Telenor Pakistan Limited, a development that underscored PTC’s strategic moves in the telecommunications sector.

Looking at broader trends, the KSE-100 index recorded a notable 3.42% increase on a Month-on-Month (MoM) basis. Analysts attributed this positive trend partly to the Federal Budget FY25, which exceeded market expectations. The budget maintained favorable tax rates on dividends and capital gains for filers investing in the stock market, contrasting with increased tax rates on other asset classes. Additionally, optimism was fueled by Fitch Ratings’ statement suggesting that the budget’s enhanced taxation measures could enhance Pakistan’s prospects for securing an International Monetary Fund (IMF) deal.

As the fiscal year concluded, market participants and analysts are cautiously optimistic about the outlook for the PSX. The interplay of economic policies, corporate developments, and global financial dynamics will likely continue shaping the trajectory of Pakistan’s stock market in the upcoming fiscal year.