Karachi, January 12, 2024 – The Pakistan stock market concluded Friday’s trading session on a flat note, with a marginal gain of 20 points, despite the recent tranche approval by the International Monetary Fund (IMF) board.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 64,638 points, a minor uptick from the previous day’s closing at 64,618 points.
Financial analysts had anticipated a more bullish trend in the market following the positive development of the IMF approving a $700 million tranche. However, the market’s resilience was tested as it grappled with external factors impacting global oil prices and speculations about potential election delays.
Analysts from Ismail Iqbal Securities noted that the market experienced a relatively flat trajectory on the last trading day, with the benchmark index spending most of the session in the green zone. Despite the optimism surrounding the IMF loan approval, gains were offset by unforeseen events, particularly the sudden surge in global oil prices due to disturbances in the Red Sea region.
Adding to the market’s uncertainty were rumors circulating about potential delays in the upcoming elections, with speculation suggesting a possible extension of up to three months. Such political uncertainties tend to unsettle investors, contributing to a cautious approach in the trading environment.
The total trading volume witnessed an uptick, reaching 403 million shares on the day, compared to 365 million shares in the previous session. This increase in trading activity reflected a heightened interest among investors, possibly triggered by the anticipation of market movements following the IMF announcement.
Closing at 64,638 points, the KSE-100 index recorded a marginal increase of 0.03 percent on a day-to-day basis. Notably, the oil and gas exploration companies, commercial banks, and the fertilizer sector emerged as the major contributors during Friday’s session, collectively adding 180 points to the index.
Despite the subdued market performance, analysts remain cautiously optimistic about the overall economic outlook, given the IMF’s continued support. The approved tranche is expected to bolster Pakistan’s foreign exchange reserves and provide a much-needed cushion for the economy amid ongoing challenges.
As the market continues to navigate through global economic uncertainties and domestic political developments, investors are advised to stay vigilant, diversify portfolios, and keep abreast of the latest developments that might influence market dynamics. The Pakistan stock market remains a dynamic entity, subject to both internal and external factors that contribute to its fluctuations.
