On Monday, the Pakistan Stock Exchange (PSX) gained 41 points in a mixed trading session during the day. The benchmark KSE-100 index of PSX ended at 40,246 points from last Thursday’s closing of 40,205 points.
According to analysts at Arif Habib Limited, a mixed session was recorded at the PSX to kick off the business week. The benchmark KSE-100 opened in green but traded in both directions, as investors still eye the ongoing negotiations between the government and International Monetary Fund (IMF) for the release of the long overdue tranche.
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Participation remained sluggish during trading hours, drying up volumes in the main board while 3rd tier scrips remained the volume leaders. Sectors contributing to the performance include Fertilizer (+50.5 points), Automobile Assembler (+22.0 points), Power Generation & Distribution (+20.1 points), Tobacco (+14.8 points), and Automobile Parts & Accessories (+5.6 points).
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Volumes increased from 89.2 million shares to 94.8 million shares (+6.3 per cent DoD). The average traded value also increased by +10.7 per cent to USD 10.7 million as against USD 9.7 million.
Stocks that contributed significantly to the volumes are WTL, PABC, TELE, EPCL, and LOTCHEM.
While the mixed session recorded at the PSX to kick off the business week may not seem significant, it highlights the importance of tracking ongoing negotiations between the government and IMF for the release of the long overdue tranche, as well as the need for continued vigilance in monitoring market trends.
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Investors remain cautious, given the uncertainties surrounding the ongoing negotiations between the government and IMF, as well as concerns about the country’s economic stability and the impact of COVID-19 on business operations.
In conclusion, the PSX gains of 41 points in a mixed trading session on Monday may be seen as a modest increase, but it is a welcome sign for investors who remain cautious about the country’s economic stability.
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Continued monitoring of market trends and ongoing negotiations with international organizations such as the IMF will be critical in ensuring the country’s long-term economic growth and stability.
