KARACHI, July 31, 2024 – Pakistan stocks experienced a sharp decline on Wednesday, shedding 742 points amid a volatile trading session.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 77,887 points, down from the previous day’s closing of 78,629 points.
Analysts at Topline Securities reported a highly volatile session at Pakistan stocks, with the index oscillating between an intraday high of 523 points and an intraday low of -819 points, eventually closing at 77,887, marking a 0.94% drop.
Significant positive contributions to the index of Pakistan stocks came from FFC, FATIMA, ENGRO, PAKT, and NESTLE, collectively adding 90 points. Conversely, UBL, SYS, LUCK, OGDC, and POL lost value, dragging the index down by 321 points.
The day’s trading volume stood at 382 million shares with a total value of Rs.14.6 billion. WTL led the volume chart with 81 million shares traded.
In the banking sector, UBL announced its 2Q2024 results, posting a consolidated EPS of Rs.12.1 and declaring an interim cash dividend of Rs.11 per share. In the fertilizer sector, EFERT declared its 2Q2024 results, reporting an EPS of Rs.1.25 and announcing an interim cash dividend of Rs.3 per share.
Throughout July 2024, the KSE-100 Index declined by 0.71% on a month-on-month basis. Analysts attributed this decline to profit-taking by investors and heightened political noise. The Supreme Court’s ruling in favor of the opposition party (PTI) regarding the reserve seat judgment, coupled with the ruling coalition’s measures to counter the allocation, fueled market uncertainty.
Other significant developments during the month included:
1. CPI Inflation for June 2024 clocking in at 12.6% YoY, compared to 11.8% in May 2024.
2. Remittances for June 2024 reached US$3.2 billion, up by 44% YoY.
3. The current account deficit for June 2024 stood at US$329 million.
The average daily traded volume and value for July 2024 were 407 million shares and Rs.19.3 billion, respectively.
“The market is navigating through a complex landscape of political uncertainties and economic challenges,” noted a market analyst. “Investors are closely monitoring these developments, which are expected to continue influencing market dynamics in the coming weeks.”
As the market braces for further fluctuations, stakeholders are advised to stay vigilant and informed about the evolving political and economic scenarios. The interplay of these factors will be crucial in shaping the future trajectory of Pakistan’s stock market.