Karachi, January 25, 2024 – The Pakistan stock market encountered a downturn on Thursday, breaking a streak of three consecutive positive sessions.
The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) experienced a notable drop of 524 points, concluding the day at 64,298 points. This represented a 0.81 percent decrease compared to the previous day’s closing figure of 64,822 points.
According to the analysts at Topline Securities Limited, Pakistan equities began the day on a positive note, with the KSE-100 index reaching an intraday high of 65,213 levels, gaining 391 points.
However, the optimism was short-lived as uncertainty surrounding the Circular Debt Reduction Plan cast a shadow. Conflicting rumors about the plan’s acceptance or rejection, attributed to the Ministry of Finance, triggered a decline in investor confidence, particularly in energy stocks. As a result, a selling spree ensued, notably impacting OGDC and PPL.
The benchmark index failed to sustain the psychologically significant 65,000 level due to the selling pressures mentioned, leading to a negative closure at 64,298.
During the trading day, OGDC, PPL, BAHL, HUBC, and PSO collectively contributed negatively by losing 510 points. Conversely, ENGRO, MEBL, and EFERT attracted buying interest, adding 137 points to mitigate some of the losses.
The overall trading activity at the bourse on that day saw over 460 million shares changing hands, with a total value of Rs25.2 billion. OGDC dominated the volumes chart with the trading of over 49.7 million shares.
The market’s downward trend was primarily attributed to uncertainties related to the Circular Debt Reduction Plan, influencing investor sentiment in the energy sector.
The conflicting information regarding the plan’s fate created a sense of instability, prompting investors to reevaluate their positions and contribute to the day’s negative market performance.
As the market closed on a decline, market participants awaited further clarity on the Circular Debt Reduction Plan and other factors that could influence the trajectory of the Pakistan stock market in the coming sessions.
