KSE-100 index up 216 points in range-bound trading

Pakistan Stock Exchange

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a modest gain of 216 points on Wednesday, closing at 44,260 points, up from the previous day’s closing of 44,044 points.

The performance of KSE-100 Index remained range-bound, influenced by the ongoing roll-over week, which led to fluctuating trading dynamics throughout the session.

Analysts at Arif Habib Limited highlighted that the KSE-100 index experienced a mix of profit-taking and competitive trading between bulls and bears. The initial trading hour saw significant profit-taking, but the market stabilized and continued to battle between positive and negative sentiments throughout the day.

The refinery sector was a major highlight as discussions between the Government and top management of refineries regarding a new policy path for the oil refining industry garnered attention. This sector’s focus contributed to the overall market activity and performance.

Side-ways activity persisted, with significant volumes observed in third-tier stocks, indicating a mixed interest from investors across various market segments.

Key sectors contributing to the market’s performance included:

• Pharmaceuticals: +31 points

• Oil & Gas Marketing Companies: +39 points

• Power Generation & Distribution: +28 points

• Refinery: +23 points

• Textile Composite: +23 points

The KSE-100 Index saw a notable increase in trading volumes, which rose from 143.4 million shares to 271.1 million shares, marking an 89% day-on-day increase. Similarly, the traded value surged by 63.5%, reaching USD 45.8 million compared to USD 28.0 million on the previous day.

Stocks that significantly contributed to the trading volumes included:

• Cnergyico PK Limited (CNERGY)

• WorldCall Telecom Limited (WTL)

• K-Electric Limited (KEL)

• TRG Pakistan Limited (TRG)

• Dewan Sugar Mills Limited (DSIL)

The market’s steady rise despite the range-bound conditions suggests investor confidence in select sectors, particularly in light of potential policy changes in the refining sector. The increased activity and trading volumes reflect a heightened interest from investors, possibly driven by anticipation of favorable outcomes from ongoing discussions and policy developments.

In conclusion, the PSX’s KSE-100 index managed to close with a gain of 216 points amid a day of cautious trading and sector-specific focus. The rise in trading volumes and value underscores a vibrant market atmosphere, driven by strategic sectoral performances and investor optimism.