Karachi, July 12, 2024 – The Pakistan Stock Exchange (PSX) experienced a tumultuous trading session on Friday following the Supreme Court of Pakistan’s decision in the reserve seat case.
The landmark verdict, which favored the Pakistan Tehreek-e-Insaf (PTI), triggered significant market fluctuations.
The benchmark KSE-100 index of PSX closed at 79,944 points, a slight decline of 48 points from the previous day’s closing of 79,992 points. This minor drop of 0.06% belied the day’s earlier extreme volatility.
Analysts at Topline Securities Limited reported that the index plummeted by as much as 1,380 points, or 1.73%, shortly after the Supreme Court announced its decision. This initial reaction reflected PSX investor concerns over the political implications of the verdict, which was seen as a boost for PTI amidst ongoing political turmoil.
However, PSX sentiment shifted later in the day as investors reassessed the situation. The ruling coalition led by Pakistan Muslim League-Nawaz (PML-N) still retains 62% representation in the National Assembly, providing a measure of stability. This reassessment led to a recovery in the index, mitigating earlier losses.
Positive contributions to the PSX KSE-100 index were led by major stocks such as Hub Power Company Limited (HUBC), Oil and Gas Development Company Limited (OGDC), Fauji Fertilizer Company Limited (FFC), Pakistan State Oil (PSO), and Bank Al Habib Limited (BAHL). These stocks collectively added 384 points to the index.
Conversely, the PSX KSE-100 index was weighed down by losses in Habib Bank Limited (HBL), Fauji Fertilizer Bin Qasim Limited (FFBL), Engro Fertilizers Limited (EFERT), Service Industries Limited (SRVI), and Bank Alfalah Limited (BAFL), which collectively subtracted 415 points.
Trading volume for the day was robust, with 430 million shares changing hands, amounting to a total trading value of Rs 23.2 billion. FFBL emerged as the volume leader, with 45.3 million shares traded.
Market participants are now closely monitoring the political landscape and its potential impact on the economy and stock market. The Supreme Court’s decision, while significant, is just one of many factors influencing market sentiment. Investors remain cautious, balancing the short-term political uncertainties with long-term economic fundamentals.
As the market digests the implications of the Supreme Court’s verdict, volatility is expected to persist in the coming sessions. Traders and investors alike will need to stay vigilant, navigating the complex interplay of political and economic factors shaping the PSX’s trajectory.