Karachi, March 11, 2024 – Pakistan stocks faced a slight setback on Monday as equities shed 39 points, closing the benchmark KSE-100 index at 65,755 points.
This dip comes despite positive reports surrounding the formation of the new government’s cabinet.
The week began on a promising note for Pakistan equities, with the KSE-100 index reaching an intraday high of 66,119 points, reflecting a 0.50 percent increase of 326 points in earlier trading hours. Analysts at Topline Securities Limited noted that the initial buying momentum could be attributed to the positive news of the cabinet formation, with newly appointed government officials taking their oaths. Furthermore, the Prime Minister convened the first cabinet meeting in the evening, instilling a sense of optimism among investors.
However, the 66,000 level has proven to be a challenging zone, where bullish forces faced strong resistance, leading to a surrender for the fifth time since last week. Consequently, the market closed at 65,755 points, experiencing a loss of 39 points, equivalent to a 0.06 percent decrease.
Despite the overall dip, certain sectors contributed positively to the index. The Power, Fertilizer, Tech, Auto, and Pharma sectors played a vital role, with companies like HUBC, FFC, PTC, MTL, and SEARL collectively adding 95 points. On the flip side, some companies like DAWH, PSEL, and NESTLE faced selling pressure, resulting in a cumulative loss of 160 points.
During the trading session, over 543 million shares were exchanged at the Pakistan Stock Exchange, amounting to a total value of Rs16.5 billion. CNERGY emerged as the volume leader, with the trading of over 95.9 million shares.
While the market witnessed a dip, market observers suggest that the current scenario is not indicative of a long-term trend. The fluctuations around the 66,000 level highlight the ongoing struggle between bullish and bearish forces. Investors remain watchful, anticipating further developments in the political landscape and economic policies that could impact market dynamics.
The formation of the new cabinet has undoubtedly influenced market sentiments, but challenges persist as the market navigates through crucial resistance levels. As the week progresses, market participants will closely monitor government initiatives, economic indicators, and global trends to gauge the direction in which Pakistan’s equities may move in the coming days.
