Karachi, August 2, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 486 points on Friday, buoyed by positive sentiments throughout the trading day.
The KSE-100 index closed at 78,226 points, up from the previous day’s closing of 77,740 points.
Analysts at Topline Securities Limited reported that the KSE-100 index largely traded in the positive zone during the session, ending the day 0.62% higher. Major positive contributions to the index came from Hub Power Company (HUBC), Habib Bank Limited (HBL), United Bank Limited (UBL), Oil and Gas Development Company (OGDC), and National Foods Limited (NATF), which collectively added 253 points to the KSE-100 index. Conversely, Bank Al Habib Limited (BAHL), Pakistan State Oil (PSEL), Millat Tractors Limited (MTL), Fauji Fertilizer Company (FFC), and Dawood Hercules Corporation Limited (DAWH) lost value, weighing down the index by a total of 151 points.
The traded volume and value for the day stood at 440 million shares and Rs 20.38 billion, respectively. The day’s volume leader was Cnergyico Pk Limited (CNERGY), with 66.6 million shares traded.
Reviewing the weekly performance, analysts noted that the KSE-100 index closed slightly higher by 0.25% on a week-on-week (WoW) basis. Key events influencing the market during the outgoing week included the State Bank of Pakistan (SBP) announcing a 100 basis points reduction in the policy rate to 19.5% on Monday, Fitch Ratings upgrading Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’, and the Consumer Price Index (CPI) inflation for July 2024 clocking in at 11.1% year-on-year (YoY), compared to 12.6% in June 2024. Additionally, Pakistan’s trade deficit for July 2024 was reported at $1.94 billion, down by 19% month-on-month (MoM).
The average daily traded volume and value at the KSE-100 index during the week stood at 310 million shares and Rs 14.9 billion, respectively.
Market analysts attribute the positive momentum to the combination of improved economic indicators and favorable policy measures. The reduction in the policy rate by the SBP provided a boost to investor confidence, while the upgrade by Fitch Ratings further enhanced the market outlook. The decline in CPI inflation and the trade deficit also contributed to the positive sentiment, encouraging market participants to take bullish positions.
As the market continues to respond to these developments, stakeholders remain cautiously optimistic, monitoring both domestic and international economic trends for further cues.