Karachi, March 15, 2024 – The Pakistan Stock Exchange (PSX) witnessed a turbulent trading session on Friday as the benchmark KSE-100 index plunged by 248 points amidst volatile market conditions.
Closing at 64,816 points, the index recorded a significant decline from the previous day’s closing of 65,064 points, marking a decrease of -0.38 percent. Analysts at Topline Securities Limited noted that the market experienced a range-bound session, with the index oscillating between its intraday high of 289 points and intraday low of 248 points before settling at its final level.
The volatility in the market was attributed to several factors, including reports of dissatisfaction expressed by an International Monetary Fund (IMF) team over the Ministry of Finance’s assertion that all structural benchmarks had been met before the completion of the IMF staff review. Additionally, anticipation surrounding the upcoming monetary policy announcement on Monday prompted investors to adopt a cautious stance, leading many to remain on the sidelines.
Despite the overall downward trend, certain stocks managed to make positive contributions to the index. Companies such as EFERT, MEBL, LUCK, NBP, MARI, and SYS collectively contributed 135 points to the index. However, this was overshadowed by losses incurred by OGDC, HUBC, PPL, BAHL, UBL, and PSO, which collectively weighed down the index by -179 points. HASCOL emerged as today’s volume leader, with approximately 57 million shares traded.
Reflecting on the performance of the market during the outgoing week, the KSE-100 Index experienced a decline of -1.49 percent on a Week on Week (WoW) basis. This negative trajectory was attributed to profit-taking activities by both individual and corporate investors following a period of bullish momentum driven by the formation of the government and the administration’s commitment to engage with the IMF.
Key events during the week included the arrival of an IMF team for the second review of the $3 billion package and a successful PIB auction, where the government raised Rs 56 billion against a target of Rs 190 billion. Notably, cut-off yields during the auction declined in the range of 2-15 basis points, indicating investor confidence in government securities.
Despite the challenging market conditions, the average daily traded volume and value during the week stood at 340 million shares (down 20 percent WoW) and Rs 11.4 billion (down 31 percent WoW), respectively.
As the market continues to navigate through uncertain terrain, investors are advised to remain vigilant and informed about the evolving economic and geopolitical landscape, which could influence future market movements and investment decisions.
In conclusion, the decline in the KSE-100 Index underscores the prevailing volatility and uncertainty in the Pakistan Stock Exchange, highlighting the importance of prudent risk management and strategic decision-making in today’s dynamic market environment.
