Karachi, December 29, 2023 – In a remarkable close to the financial year, the Pakistan stock market experienced a surge, gaining 399 points on the last trading day of 2023.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded at 62,451 points, marking a substantial uptick from the previous day’s closing of 62,052 points.
Financial analysts at Topline Securities reported that the final trading session of the calendar year witnessed a range-bound session. The index demonstrated volatility by reaching an intraday high of 399 points and an intraday low of -245 points before settling at the 62,451 level.
Key contributors to the positive momentum in the index included PPL, UBL, KEL, EFERT, FFC, and OGDC, collectively contributing 361 points. Conversely, BAHL, HUBC, MCB, MARI, HBL, and TRG experienced a decline, collectively weighing down the index by -233 points.
The total traded volume and value for the day stood at 588 million shares and Rs.16.8 billion, respectively. KEL emerged as the volume leader for the day, with 140 million shares traded.
Analysts highlighted that the KSE 100 Index recorded a 3.2 percent gain on a Month-over-Month (MoM) basis, marking the fourth consecutive positive monthly closing. This positive trend was attributed to growing investor confidence in the anticipated decline in interest rates in the upcoming period.
Several noteworthy events during the outgoing month played a crucial role in shaping market sentiment:
1. CPI Increase: The Consumer Price Index (CPI) for November showed a 29.2 percent Year-over-Year (YoY) increase, compared to 26.9 percent in October 2023.
2. Auto Sales Growth: Pakistan’s Auto Sales, including non-PAMA members, grew by 6 percent Month-over-Month (MoM) in November, reaching 7.7K units.
3. Monetary Policy Committee Decision: The Monetary Policy Committee chose to maintain the policy rate, taking into account the impact of the recent gas price hike on inflation in November 2023, which surpassed earlier expectations.
4. Current Account Surplus: After four consecutive months of deficit, the Current Account posted a surplus of US$9 million in November 2023.
5. Foreign Direct Investment (FDI): FDI for November 2023 reached US$131 million, marking a 7 percent MoM and 12 percent YoY increase.
The average traded volume and value for the month stood at 1 billion shares (up by 53 percent MoM) and Rs.20 billion (down by 5 percent MoM), respectively.
Investors appear to be buoyed by positive economic indicators and the prospect of a decline in interest rates, as evidenced by the consecutive positive monthly closings. As the market heads into the new year, analysts will be closely monitoring both domestic and global factors to gauge the sustainability of this positive momentum in the Pakistan stock market.
