Karachi, March 21, 2024 – Pakistan bourse experienced a decline of 314 points on Thursday, attributed to a profit-taking session observed during the day.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) concluded at 64,417 points, down from the previous day’s closing of 65,731 points.
Analysts at Topline Securities Limited noted that the Pakistan bourse started the day on a positive trajectory, with the KSE-100 index reaching an intraday high of 66,196 points, marking an increase of 464 points or 0.70 percent in the morning session.
However, the index failed to sustain momentum above the 66,000 mark, encountering profit-taking activities at the day’s high. Consequently, the KSE-100 index slipped into negative territory and closed at 65,417 points, reflecting a decline of 314 points or 0.48 percent.
The increase in treasury bills cutoff yields during the previous day’s auction likely contributed to the market’s downward movement. This development may have undermined investors’ confidence regarding the prospect of monetary easing. Meanwhile, on the global front, the US Federal Reserve’s Federal Open Market Committee (FOMC) maintained its benchmark interest rate in the range of 5.25 percent to 5.5 percent, signaling a “Status Quo” in its decision while hinting at three rate cuts in CY24.
The Exploration & Production (E&P), Technology, and Cement sectors exerted negative pressure on the index, with companies such as PPL, SYS, OGDC, LUCK, and PIOC collectively losing 185 points. Conversely, the National Bank of Pakistan (NBP), Fauji Fertilizer Company (FFC), and MCB Bank witnessed some buying interest, contributing a cumulative addition of 102 points.
Trading activity at the bourse remained moderate, with over 389.6 million shares exchanged, amounting to a total value of Rs 11.3 billion. Pakistan Telecommunication Company Limited (PTC) led the volumes chart with the trading of over 52.8 million shares.
The market’s performance reflects the intricate interplay of domestic and global economic factors, coupled with investor sentiment and trading patterns. As investors navigate these dynamics, market participants are advised to maintain a cautious approach and closely monitor developments to make informed investment decisions.
While the Pakistan bourses experienced a decline attributed to profit-taking activities, the underlying market fundamentals and investor sentiment remain key determinants of future market movements. As the market continues to evolve, stakeholders will closely watch for emerging trends and opportunities in the coming sessions.
