Karachi, January 26, 2024 – The Pakistan stock market opened with optimism on Friday, surging to an intraday high of 236 points. However, the latter half of the day painted a different picture as pressure mounted due to investors engaging in profit-taking activities in the banking sector ahead of the much-anticipated monetary policy committee meeting scheduled for Monday.
The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) experienced significant fluctuations throughout the day, ultimately concluding with a notable decline of 485 points, settling at 63,813 points by the closing bell. This represented a 0.75 percent decrease from the previous day’s closing figure of 64,298 points, leaving traders and investors on the edge of their seats.
According to analysts at Topline Securities Limited, despite the initial positive momentum with a 236-point gain, the market faced pressure in the latter half due to investors opting for profit-taking in the banking sector in anticipation of the monetary policy committee meeting on Monday.
In a separate development, the fertilizer sector made headlines as FFC declared its 4Q2023 results. The company reported an earnings per share (EPS) of PKR 5.86 and a dividend per share of PKR 4.1. Despite these positive figures, investors reacted negatively to the announcement, leading to FFC closing 2.5 percent lower than its previous day’s closing. The disappointment stemmed from the dividend payout falling short of industry estimates, showcasing the market’s sensitivity to expectations.
The market dynamics were further shaped by individual stock performances. OGDC, HMB, INDU, ABL, and LCI emerged as the major contributors to the index, collectively adding an impressive 154 points. On the flip side, MARI, FFC, MEBL, HBL, and BAHL experienced value losses, collectively exerting downward pressure on the index with a cumulative impact of -226 points.
For the day, the total traded volume amounted to a substantial 413 million shares, underscoring the active participation of market players. The total traded value stood at PKR 16 billion, reflecting the substantial financial transactions that took place during the session. PIAA emerged as the volume leader of the day, with a significant trading volume of 66 million shares, capturing the attention of market participants.
As investors navigated the twists and turns of the market, the day’s events underscored the inherent volatility and unpredictability that characterizes the financial landscape. The upcoming monetary policy committee meeting looms large, adding an element of anticipation and speculation to future market movements.
