Pakistan Stocks Fall 598 Points in Mixed Trading Session

Pakistan Stocks Fall 598 Points in Mixed Trading Session

Karachi, June 24, 2024 – Pakistan stocks experienced a mixed trading session on Monday, culminating in a significant drop of 598 points. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 78,232 points, down from last Friday’s closing of 78,816 points.

Market analysts at Topline Securities Limited reported that the KSE-100 index of Pakistan stocks initially opened on a positive note, achieving an intraday high of 577 points. However, the momentum was short-lived as the index at Pakistan stocks quickly descended to an intraday low of -643 points, ultimately closing at 78,232 points, marking a decrease of 598 points.

The session was influenced by several factors, including news from the International Monetary Fund (IMF). The IMF commended Pakistan for its stringent economic measures in the 2024-25 budget, which impacted sentiments at Pakistan stocks. Analysts suggested that while the IMF’s approval generally bodes well for economic stability, it also highlighted the challenges ahead, contributing to market volatility.

The banking sector faced significant profit-taking, with major banks such as UBL, MEBL, BAHL, BAFL, and FABL collectively pulling the index down by 345 points. The sell-off in banking stocks was a key driver of the overall decline at Pakistan stocks.

Conversely, the power sector displayed resilience, particularly with HUBC (Hub Power Company) continuing its positive momentum. HUBC’s subsidiary, Mega Motors Company, entered a new line of business in electric vehicles in collaboration with BYD Auto Industry Company Limited, bolstering investor confidence in HUBC.

Trading activity on Monday at Pakistan stocks was subdued compared to previous sessions, with a total of over 384 million shares exchanged, amounting to a value of Rs15.4 billion. PASL (Pakistan Aluminum Sheet Limited) led the volume chart, with over 46 million shares traded.

Overall, the day’s mixed trading session reflected the market’s cautious sentiment amidst ongoing economic adjustments and sector-specific developments. Analysts remain vigilant, watching how the market responds to both domestic policy measures and international economic cues.

As the fiscal year 2023-24 draws to a close, market participants are keenly observing any further economic reforms and announcements that could influence the stock market’s trajectory. The interplay between stringent economic measures, sector-specific news, and global economic conditions will continue to shape the market’s performance in the coming weeks.