KARACHI, June 21, 2024 — The Pakistan Stocks experienced significant volatility on Friday, with the benchmark KSE-100 index crossing the psychological barrier of 80,000 points before succumbing to massive profit-taking.
Despite the market fluctuations, the KSE-100 index of Pakistan stocks managed a marginal gain of 9 points, closing at 78,810, up from the previous day’s close of 78,801 points.
Analysts at Topline Securities Limited described the session at Pakistan stocks as range-bound, with the index oscillating between an intraday high of +1,258 points and a low of -633 points. This volatility ultimately resulted in a flat close, with the index ticking up by a mere 0.01%.
Key contributors to the positive performance at Pakistan stocks included major players such as Hub Power Company (HUBC), United Bank Limited (UBL), Habib Bank Limited (HBL), Fauji Fertilizer Company (FFC), and Pakistan Tobacco Company (PAKT). Collectively, these stocks added 630 points to the index. Conversely, losses in Meezan Bank Limited (MEBL), Lucky Cement (LUCK), Engro Fertilizers (EFERT), Engro Corporation (ENGRO), and Systems Limited (SYS) collectively detracted 398 points.
Trading volume at the Pakistan stocks for the day stood at an impressive 471 million shares, with the total value traded amounting to Rs 20.46 billion. Worldcall Telecom Limited (WTL) emerged as the volume leader, trading 43 million shares.
The weekly performance of the KSE-100 index also reflected a positive trend, with a 2.74% gain on a week-on-week basis. This upward movement was largely attributed to investor sentiment bolstered by the lack of increased taxes on income from equities—specifically capital gains and dividends for filers—in the budget for the fiscal year 2025. Additionally, the budget announcement included higher taxes on other asset classes, further steering investments towards equities.
Support from global ratings agency Fitch also played a crucial role. Fitch’s statement regarding the increased likelihood of securing an International Monetary Fund (IMF) deal due to the new taxation measures in the budget added a layer of optimism in the market.
Average daily traded volume and value at the Pakistan stocks for the week were recorded at 462 million shares and Rs 20.6 billion, respectively, indicating robust trading activity throughout the week.
Overall, while Friday’s session closed with only a slight gain, the positive weekly performance and the factors driving investor confidence suggest a cautiously optimistic outlook for the Pakistan Stock Exchange in the near term.