Karachi, July 5, 2023 – Pakistan stocks closed flat on Wednesday, despite a positive trading session throughout the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded at 43,553 points, showing a marginal decline of 4 points compared to the previous day’s closing of 43,557 points.
Analysts at Arif Habib Limited commented on the market’s performance, stating that progress is often accompanied by periods of regression. Despite the record-breaking session earlier in the week, it is expected that the market will experience a consolidation phase to offset the rapid progress.
After reaching the August highs of around 44,000 points (with a current intra-week high of 44,511), the market needs to consolidate the aggressive gap up witnessed on Monday before it can aim for the April highs at 47,000 points.
Ideally, the KSE-100 index should trade within the large liquidity void, indicated by the green box, to generate fresh demand within the range of 42,650-43,200 points. This consolidation phase would then set the stage for further upward moves towards 47,000 points.
The refinery and power sectors continue to exhibit strong momentum, particularly with HUBC PA reaching new all-time highs (adjusted for payments) and entering a price vacuum. Declines in these sectors, down to PKR 73-76, are expected to be met with robust demand, targeting PKR 90-100 in the coming months. Investors are advised to closely monitor this sector as it holds significant potential.
The overall market sentiment remains positive, although temporary consolidation is expected before further upward movement. As the market continues to evolve, investors will be closely watching the trends and developments to make informed investment decisions.
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