Karachi, March 22, 2024 – The Pakistan stock market experienced a downturn on Friday, shedding 265 points in a range-bound trading session, reflecting cautious investor sentiment amid fluctuating market dynamics.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 65,152 points, down from the previous day’s closing of 65,417 points. Analysts at Topline Securities Limited observed a range-bound session as the index oscillated between its intraday high of 167 points and intraday low of 361 points before settling at the 65,152 level, marking a decrease of 0.41%.
The market witnessed mixed performances from various sectors, with notable positive contributions coming from NBP, PSEL, MEBL, TRG & SYS, which collectively contributed 83 points to the index. Conversely, OGDC, UBL, HBL, HUBC, and PTC experienced declines, exerting downward pressure on the index by 179 points.
Trading activity during the day recorded a volume of 208 million shares and a value of Rs 7.15 billion. PAKRI emerged as the volume leader for the day with 24 million shares traded.
Weekly Review (March 22, 2024):
The KSE 100 Index recorded a 0.5% increase on a week-on-week (WoW) basis, attributed primarily to buying in the insurance sector throughout the week, with a net buy of $24.13 million as of yesterday’s close. Significant developments during the week included:
1. Monetary Policy Announcement: The State Bank of Pakistan (SBP) announced the maintenance of the policy rate at 22%, aiming to balance economic stability amidst prevailing market conditions.
2. Current Account Surplus: February witnessed a notable turnaround in the current account, posting a surplus of $128 million, compared to a deficit of $303 million in January. This shift reflects positive trends in Pakistan’s external trade dynamics.
3. IMF Agreement: Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) for the second and final round of a 9-month Standby Arrangement (SBA). This agreement signifies continued support from the IMF in Pakistan’s economic stabilization efforts.
4. T-Bill Auction: The week saw a T-bill auction where yields increased by 26-60 basis points, reflecting changes in market sentiment and investor expectations.
Throughout the week, the average daily traded volume stood at 295 million shares, with a value of Rs 11 billion. These figures indicate sustained activity in the stock market, albeit amid fluctuations driven by both domestic and international factors.
Despite the challenges posed by evolving market conditions, investors continue to navigate the Pakistani stock market with a cautious yet optimistic approach, seeking opportunities amidst the ongoing economic developments. As Pakistan strives for economic resilience and stability, the stock market remains a key barometer of investor sentiment and economic performance.
