Karachi, January 3, 2024 – The Pakistan stock market experienced a rebound on Wednesday, closing with a gain of 297 points. The positive momentum came as a result of increased buying activities observed during the trading day, marking a recovery from the correction witnessed in the previous session.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 64,647 points, showing a significant recovery from the previous day’s closing of 64,350 points.
Analysts at Zafar Securities Limited pointed out that the PSX rebounded slightly after the correction seen in the previous session. The benchmark 100 index recorded a gain of 297 points or 0.46 percent during the session. The positive closing was attributed to the performance of index heavyweights, particularly companies like PPL, OGDC, FFC, and EFERT.
While the overall market participation witnessed a 6 percent decline, with 824.5 million shares traded, the total trading value increased to Rs 33 billion compared to the previous day’s Rs 26.6 billion. This suggests a shift in sentiment and increased activity in the market.
Among the 365 active stocks, 194 stocks advanced, 147 declined, and 24 remained unchanged. Leading the volumes were KEL, PTC, PRL, BOP, and PPL, with 127.4 million, 50.3 million, 35.7 million, 29.6 million, and 24.9 million shares traded, respectively.
The major contributors to the 100 index’s positive performance were OGDC, PPL, FFC, PAKT, KOHC, INIL, EFERT, ILP, SRVI, and ENGRO, contributing a total of 322 points. Conversely, MEBL, SYS, PSO, MTL, COLG, MCB, UNITY, MARI, TRG, and AKBL were the major downside contributors, collectively taking away 147 points from the index.
Muhammad Naeem Akhtar, Capital Market Strategist at Zafar Securities Limited, provided a technical analysis, stating, “Technical speaking, amid declining market participation, the 100 index managed to close up in today’s trade. While the benchmark erased almost 598 points from its intraday high mark of 65,244.6 points towards the closing around 64,647 points.”
This technical insight suggests that despite challenges during the trading day, the market demonstrated resilience and closed on a positive note.
The rebound in the Pakistan stock market reflects a renewed sense of optimism among investors. The positive performance, coupled with increased trading value, indicates a potential shift in sentiment and a return of confidence to the market.
As the market continues to navigate external factors and global economic conditions, investors and analysts will closely monitor future developments to gauge the sustainability of this positive momentum. The rebound serves as a testament to the dynamic nature of the stock market and its ability to recover from short-term corrections.
