Karachi, September 16, 2024 – Political uncertainty surrounding constitutional amendments weighed heavily on Pakistan’s stock market on Monday, restricting the KSE-100 Index to a modest gain of 158 points. The Pakistan Stock Exchange (PSX) saw the KSE-100 index close at 79,491 points, up from Friday’s closing of 79,333 points.
Initially, the market surged with strong gains of 660 points as investors anticipated that the government would successfully pass a critical constitutional amendment. However, as reports surfaced that the government failed to secure the required majority, market sentiment quickly shifted. The KSE-100 index, which had been on an upward trajectory, lost much of its momentum and settled with a subdued gain.
Analysts at Topline Securities observed that the market started the day on a bullish note, continuing the trend from the previous week. However, as political uncertainties grew, profit-taking set in during the second half of the trading session. The KSE-100 index hit an intraday low of 79,368 points before recovering to end the day at 79,491 points, reflecting a 0.20% gain.
Several leading stocks contributed to the overall market decline, including Meezan Bank (MEBL), D.G. Khan Cement (DGKC), United Bank Limited (UBL), Engro Corporation (ENGRO), and Oil and Gas Development Company (OGDC), which collectively dragged the index down by 126 points. On the positive side, stocks such as Mari Petroleum (MARI), Hub Power Company (HUBC), and Engro Fertilizers (EFERT) provided support, adding 373 points to the KSE-100 index.
Despite the political turbulence, trading volumes remained robust, with over 535 million shares exchanged during the session. The total market turnover amounted to Rs 8.9 billion, indicating sustained investor interest despite the uncertain political landscape. PACE Pakistan Limited led the trading volume with 56.8 million shares traded, continuing its strong performance in recent weeks.
The ongoing political tension, particularly the government’s struggles with constitutional amendments, continues to affect investor sentiment. Analysts expect the market to remain volatile in the coming days as political developments unfold.
For now, the PSX remains in a state of flux, with gains being quickly overshadowed by concerns over the political climate. Investors are advised to remain cautious and closely monitor political developments, as any major shifts could have an immediate impact on market performance.
