Karachi, April 30, 2024 – In a volatile trading session on Tuesday, the Pakistan Stock Exchange (PSX) saw its benchmark KSE-100 index drop by 592 points, closing at 71,103, down from the previous day’s close of 71,695. This 0.83 percent decline highlighted the cautious sentiment prevailing among investors.
According to analysts from Topline Securities, the market exhibited a range-bound pattern, fluctuating between an intraday high of 592 points and a low of -635 points. The session ended on a negative note due to pressures emerging in the latter part of the day, exacerbated by disappointing earnings reports from key companies.
Despite the overall downturn, some sectors managed to make gains. Positive contributions primarily came from Pakistan Petroleum Limited (PPL), Bank Al-Habib (BAHL), Fauji Fertilizer Company (FFC), Millat Tractors Ltd. (MTL), and Kot Addu Power Company (KAPCO), which together added 134 points to the index. On the flip side, significant losses were noted in Systems Limited (SYS), United Bank Limited (UBL), TRG Pakistan Ltd. (TRG), Dawood Hercules Corporation (DAWH), and Engro Fertilizers Ltd. (EFERT), collectively dragging the index down by 309 points.
Trading volumes for the day stood robust, with 560 million shares exchanged, and the transaction value amounted to Rs. 25.7 billion. WorldCall Telecom (WTL) led the volume with 47.7 million shares traded.
Looking back at the month, the KSE-100 index posted a gain of 6.1 percent in April, which analysts attribute to several key factors. These include the Consumer Price Index (CPI) for March, showing an inflation rate of 20.68 percent year-on-year, down from 23.06 percent in February, suggesting a softening inflationary trend. Additionally, diplomatic and economic interactions between Pakistan and Saudi Arabia seemed to foster investor confidence, as agreements were reached to expedite a substantial $5 billion investment tranche, part of a larger $25 billion Saudi investment commitment over the next five years.
Moreover, Pakistan recorded a current account surplus of $619 million in April, marking the highest monthly surplus in nine years, compared to a modest $98 million in February. The average daily traded volume and value in April showed a significant increase, with shares traded rising by 41.5 percent month-over-month and value by 61 percent year-over-year.
On the foreign investment front, April saw a net purchase of equities worth $45.61 million by foreign corporates, contrasting with net sales by insurance companies, banks, and individual investors totaling $21 million, $16 million, and $11.4 million respectively.
This mixed performance highlights the challenges and opportunities within the Pakistani market, reflecting broader economic trends and the impacts of international economic diplomacy. Moving forward, investors remain watchful of global economic cues and domestic financial stability to gauge the market’s direction in the coming months.
