Karachi, June 8, 2023: The Pakistan stock market experienced a significant decline on Thursday as investors adopted a cautious approach ahead of the federal budget announcement.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,686 points, marking a decline of 456 points from the previous day’s closing of 42,142 points.
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Market analysts attributed the drop in stock prices to profit selling and investor apprehension surrounding the upcoming federal budget for the fiscal year 2023-2024, which is scheduled to be announced on Friday, June 9, 2023.
Arif Habib Limited analysts reported witnessing profit selling activities throughout the day. Although the KSE-100 index initially opened on a positive note, profit selling dominated the market and kept it choppy, causing investors to opt for booking profits after three consecutive sessions of positive performance, ultimately leading to a decline in the market.
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Notably, investor participation remained robust, with the volume board being led by third-tier stocks. However, the overall trading volume decreased from 332.5 million shares to 203.8 million shares, representing a decline of 38.7 percent compared to the previous day. Similarly, the average traded value also decreased by 19.3 percent to USD 20.1 million, down from USD 25.0 million.
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Several sectors contributed to the overall performance of the market. The sectors that experienced the most significant decline were Commercial Banks (-131.9 points), Technology & Communication (-89.5 points), Exploration and Production companies (E&P) (-81.5 points), Cement (-49.4 points), and Oil Marketing Companies (OMCs) (-34.2 points).
In terms of trading activity, the stocks that contributed significantly to the volumes were UNITY, WTL, TPLP, PRL, and PIAA.
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With the federal budget announcement looming, market participants will closely monitor the budget proposals and their potential impact on various sectors. The market’s reaction to the budget announcement will likely shape the direction of the Pakistan stock market in the coming days.
Note: This stock report is based on the information available up until June 8, 2023, and does not reflect any subsequent market developments or changes.
