Karachi, December 15, 2023 – The Pakistan stock market witnessed a substantial gain of 680 points on Friday, attributed to a crucial clarification issued by the Election Commission (EC).
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 66,130 points, marking a significant surge from the previous day’s closing figure of 65,450 points.
Analysts at Topline Securities underscored the impact of the Election Commission of Pakistan’s clarification, which affirmed that the upcoming polls are scheduled to take place as planned on February 8, 2024. This assurance seemingly alleviated concerns among investors, prompting a surge in market confidence.
Major positive contributions to the index were observed from Pakistan Petroleum Limited (PPL), K-Electric Limited (KEL), Millat Tractors Limited (MTL), China Energy Limited (CNERGY), and Bank Alfalah Limited (BAFL), collectively adding 301 points to the index. Conversely, losses were incurred by MCB Bank Limited (MEBL), Bank Alfalah Limited (BAHL), Service Industries Limited (SRVI), United Bank Limited (UBL), and Hub Power Company Limited (HUBC), leading to a decline of 78 points on the index.
The total traded volume for the day reached 1.74 million shares, with a value of Rs.29.9 billion. K-Electric Limited (KEL) emerged as the volume leader for the day, recording a substantial trading volume of 385 million shares.
In the weekly review provided by analysts, the KSE-100 Index closed slightly negative (-0.14%) on a week-on-week (WoW) basis. This marked the end of a 10-week positive weekly closing streak, driven by profit-taking activities by investors and concerns regarding the timing of the upcoming elections, fueled by news flow in the mainstream media during the week.
Several key events during the week shaped market dynamics, including positive Pakistan Auto Sales numbers for November, the Monetary Policy Committee’s decision to maintain the policy rate, a T-Bill auction where yields remained largely unchanged, and Fitch Ratings affirming Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘CCC’.
The average daily traded volume for the week saw a 22% increase, standing at 1,253 million shares, while the value declined by 12% on a WoW basis, amounting to Rs.30 billion. As the market navigates through various economic indicators and political developments, investors remain watchful of potential shifts in market sentiment in the upcoming weeks.
