Pakistan stocks experience modest growth amidst profit-taking

KARACHI: Pakistan’s stock market witnessed a slight upward trend on Wednesday as investors engaged in profit-taking during the final trading hour.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,117 points, marking a gain of 18 points compared to the previous day’s close at 41,099 points.

According to analysts at Arif Habib Limited, the PSX recorded another range-bound session throughout the day. The market started the day on a positive note with favorable sentiments regarding the news of the renewal of the IMF program, leading to an intraday high of 242.92 points and keeping the PSX in the green. However, profit-selling emerged during the last trading hour, causing the index to close in the red. Investor engagement remained sluggish, with lower-tier equities dominating the trading volume.

The overall performance was influenced by various sectors. The Textile Composite sector contributed 27.0 points, followed by E&P’s (exploration and production) with 22.7 points, Food & Personal Care Products with 21.2 points, Commercial Banks with 13.0 points, and Tobacco with 7.2 points.

The trading volume saw an increase from 91.5 million shares to 105.6 million shares, representing a 15.4 percent day-on-day (DoD) rise. Furthermore, the average traded value surged by 60.9 percent to USD 9.0 million compared to USD 5.5 million.

Among the stocks that witnessed significant trading volumes were HASCOL, WTL, HBLTETF, FFL, and CNERGY.

This modest growth in the Pakistan stock market comes as investors took the opportunity to book profits. The market remained range-bound for the most part of the day, and the sentiment was initially positive due to the news of the IMF program renewal. However, profit-selling in the final trading hour resulted in a minor decline.