KARACHI: Pakistan stocks showed a modest recovery on Wednesday, gaining 30 points amid subdued investor participation throughout the trading session.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 39,717 points, slightly higher than the previous day’s closing of 39,687 points. Despite the tepid activity, this gain reflects some optimism in the market.
Analysts at Arif Habib Limited attributed the positive session at the PSX to clarity on the recent Monetary Policy Statement. The announcement of a 100 basis points hike in the interest rate initially surprised investors but ultimately boosted market sentiment. As a result, Pakistan stocks managed to sustain a positive trajectory during the day.
However, ongoing political uncertainties in the country continued to weigh on investor confidence, keeping participation sluggish. Trading volumes on the main board remained relatively dry, while third-tier companies dominated activity on the volume board.
Key sectors contributing to the day’s performance included Chemicals (+12.8 points), Miscellaneous (+12.3 points), Technology & Communication (+8.0 points), Power Generation & Distribution (+7.7 points), and Insurance (+7.0 points). These sectors helped drive the marginal recovery in Pakistan stocks despite broader challenges.
Market activity showed slight improvement compared to the previous session. Total trading volumes increased from 83.3 million shares to 86.7 million shares, representing a 4.2% day-on-day rise. Similarly, the average traded value saw an 11.2% jump, reaching USD 8.5 million compared to USD 7.6 million in the previous session.
Stocks contributing significantly to the trading volume included SILK, TELE, WTL, OGDC, and PTL, with these companies accounting for a notable portion of the day’s turnover.
Despite the cautious sentiment, Pakistan stocks continue to demonstrate resilience. Market participants are keenly observing developments in both the political and economic spheres, which will likely influence future trading activity.
The PSX’s performance today underscores the challenges faced by Pakistan stocks, as they navigate through a combination of external pressures and domestic uncertainties. Nonetheless, the positive close offers a glimmer of hope for investors seeking stability in the coming sessions.