Karachi, May 25, 2023 – The Pakistan stock market witnessed a volatile session on Thursday, resulting in a decline of 87 points by the end of the trading day.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,030 points, down from the previous day’s closing of 41,117 points. The market experienced mixed activity throughout the day, influenced by factors such as the Pak rupee and US dollar exchange rate, as well as cautious investor sentiment regarding potential new taxes in the upcoming budget.
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The benchmark KSE-100 index initially opened on a positive note. However, due to fluctuations in the Pak rupee and US dollar parity, the market witnessed volatile activity and eventually closed in the red. Investors remained cautious in response to rumors surrounding new taxes expected in the forthcoming budget. While volumes remained decent across the board, third-tier equities continued to dominate trading.
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The performance of various sectors contributed to the overall market dynamics. Sectors that had a negative impact on the index included Technology & Communication (-69.3 points), Commercial Banks (-22.8 points), Textile Composite (-10.6 points), Pharmaceuticals (-8.3 points), and Leather & Tanneries (-7.0 points).
Trading volumes saw an increase from 105.6 million shares to 125.3 million shares (+18.7 percent Day-over-Day). The average traded value also rose by 57.4 percent to USD 14.1 million, compared to the previous day’s USD 9.0 million.
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Several stocks made significant contributions to the trading volumes during the session. The stocks that stood out in terms of trading activity were GATM, PRL, WTL, GRR, and MLCF.
The Pakistan stock market experienced a volatile session, with the benchmark index declining by 87 points by the end of the trading day. Factors such as the exchange rate between the Pak rupee and US dollar and rumors of new taxes in the upcoming budget contributed to the cautious attitude of investors.
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While certain sectors faced negative performance, trading volumes remained decent, and specific stocks garnered significant attention. Market participants will continue to monitor developments and adjust their strategies accordingly as the market responds to evolving economic and regulatory conditions.
