Karachi, May 21, 2024 – Pakistan equities saw a moderate gain on Tuesday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closing 123 points higher in a session marked by mixed trading. The index ended the day at 75,207 points, up from the previous day’s close of 75,084 points.
Analysts at Topline Securities noted that the trading session was characterized by volatility. The KSE-100 index reached an intraday high of 398 points and a low of 125 points before settling with a modest gain of 0.16%. This mixed performance comes as investors anticipate the upcoming federal budget for the fiscal year 2024-25, which will be presented in the National Assembly on Friday, June 7, 2024.
Key contributors to the positive movement in the Pakistan equities included Meezan Bank Limited (MEBL), Bank AL Habib Limited (BAHL), United Bank Limited (UBL), Service Industries Limited (SRVI), and Pakistan GasPort Consortium Limited (PKGP). These stocks collectively added 301 points to the index. Conversely, Dawood Hercules Corporation Limited (DAWH), Pakistan Oilfields Limited (POL), Fauji Fertilizer Company Limited (FFC), Thal Limited (THALL), and Oil & Gas Development Company Limited (OGDC) collectively subtracted 180 points.
Trading activity was robust at the Pakistan equities, with over 460 million shares exchanged at the bourse, amounting to a total value of Rs15.86 billion. Notably, K-Electric Limited (KEL) led the volume chart, with just over 40.9 million shares traded. This surge in activity followed news that the power regulator had approved a comprehensive seven-year plan for K-Electric. The plan aims to increase K-Electric’s generation capacity by approximately 3,200 MW and includes a significant tariff reduction from 8.7 cents to 7.9 cents per kilowatt-hour, reflecting a 9% decrease.
Market participants remain cautiously optimistic as they await detailed announcements in the federal budget. The budget’s fiscal policies and allocations are expected to have significant implications for various sectors, particularly those heavily represented on the stock exchange. Analysts predict that clarity on taxation, subsidies, and development spending could drive market sentiment and influence trading patterns in the coming weeks.
Despite the mixed session, the modest gains reflect underlying investor confidence in the market’s resilience and potential for growth, especially with strategic regulatory decisions and fiscal measures on the horizon. The forthcoming budget presentation is anticipated to be a critical factor in shaping the market’s trajectory, with stakeholders keenly watching for policies that could stimulate economic activity and bolster market performance.
Tuesday’s trading session on the Pakistan equities saw the KSE-100 index rise by 123 points amid a day of fluctuating activity. As investors look ahead to the federal budget, the market’s performance underscores a blend of cautious optimism and strategic positioning.