Karachi, January 19, 2024 – The Pakistan Stock Exchange (PSX) wrapped up the trading week on a positive note, as the benchmark KSE-100 index recorded an 80-point gain on Friday.
The index closed at 63,282 points, marking a slight increase from the previous day’s closing at 63,202 points.
Analysts at Topline Securities Limited reported that the KSE-100 Index started the day on a positive trajectory, reaching an intraday high of 710 points. The positive momentum during the first half of the trading session is attributed to the apparent easing of tensions between Pakistan and Iran. However, as the day progressed, investors opted to book their intraday gains, particularly in light of the uncertainty surrounding the upcoming elections. Consequently, the index experienced a decline in the second half, closing at the 63,282 level, reflecting a modest uptick of 0.13%.
The major positive contributors to the index were ENGRO, MARI, FFC, MTL, and DAWH, collectively contributing 119 points. On the contrary, BAHL, SNGP, SRVI, PTC, and NRL experienced losses, weighing down the index by -60 points. KEL emerged as the volume leader for the day, with approximately 50 million shares traded.
On a week-over-week (WoW) basis, the KSE 100 Index recorded a decline of -2.1%. Analysts attribute this downturn to the Pak-Iran conflict, where both nations engaged in missile attacks on “militants” operating in each other’s territories. Additionally, investors showed a preference for staying on the sidelines ahead of the impending election. The week saw a notable decrease in investor participation, with average traded volume and value standing at 389 million shares (down by 31% WoW) and Rs. 13.77 billion (down by 31% WoW), respectively.
Several significant developments influenced the market dynamics during the outgoing week. These include the Current Account posting a surplus of $397 million in December 2023, a successful PIB fixed-income auction where the government raised Rs. 158 billion and cut-off yields decreased by 38-50bps, Foreign Direct Investment (FDI) amounting to $211 million (up by 61% MoM) in December 2023, confirmation by the UAE to roll over a $2 billion deposit for one year, and the Pakistan Stock Exchange (PSX) announcing that the voluntary delisting committee had determined a minimum purchase price of Rs. 609/share for PSMC delisting, which was accepted by PSMC as confirmed in a notice sent to the exchange.
As the market continues to navigate geopolitical uncertainties and upcoming events, investors remain vigilant, assessing the impact of these developments on their investment decisions. The PSX will continue to be closely monitored for any further shifts in sentiment or significant market-moving events.
