Pakistan Stocks Begin FY25 with 397-Point Gain

Pakistan Stocks Begin FY25 with 397-Point Gain

Karachi, July 1, 2024 – Pakistan stocks commenced the fiscal year 2024-25 on a positive note, as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged by 397 points in a mixed trading session.

The KSE-100 index closed the day at 78,824 points, marking a notable increase from the previous day’s closing of 78,445 points. Analysts from Topline Securities observed that the index reached an intraday high of 1,091 points (1.39%) before settling at its closing figure, reflecting investor optimism at the start of the new fiscal year.

However, profit booking activities in the latter half of the session at Pakistan stocks tempered some of the early gains, as investors opted to capitalize on the initial uptrend.

The positive sentiment at Pakistan stocks at the outset of FY25 was supported by various factors. The Consumer Price Index (CPI) for June 2024 rose by 12.6% year-on-year, compared to 11.8% in the previous month, indicating persistent inflationary pressures.

On a monthly basis, Consumer Price Index (CPI) increased by 0.5% in June 2024, contrasting with a 3.2% decline in May 2024 and a marginal decrease in June 2023.

Moreover, recent fluctuations in global oil prices led to an increase in petrol prices by Rs7.45 per litre in Pakistan, further impacting market dynamics.

Investor interest at Pakistan stocks was notably concentrated in the cement sector, which responded to industry-wide price adjustments. Effective July 1, 2024, cement prices rose by approximately Rs125 per bag in the South region to offset higher Federal Excise Duty (FED). This move resulted in varied performances among sector giants, with KOHC and PIOC closing positively, while LUCK, CHCC, and DGKC registered declines.

Key contributors to the day’s Pakistan stocks gains included stocks like PPL, EFERT, UBL, SRVI, and PAKT, collectively adding +274 points to the index. Conversely, ENGRO, LUCK, MARI, CHCC, and THALL collectively detracted 102 points from the index due to their negative performance.

Trading activity remained robust, with over 304 million shares exchanging hands, valued at approximately Rs13.7 billion. PTC led the volumes chart with trading exceeding 30.2 million shares, underlining investor interest in the telecommunications sector.

Looking ahead, participants of Pakistan stocks will closely monitor economic indicators and global developments for further insights into market direction amid ongoing volatility and economic challenges.

The positive start to FY25 reflects investor resilience and cautious optimism amidst evolving economic conditions and policy adjustments, shaping expectations for the trajectory of Pakistan’s equity markets in the coming months.