KARACHI: The Pakistan Stock Exchange (PSX) experienced a downturn on Monday, with the share market closing lower by 204 points as selling pressure dominated trading activities throughout the day.
The benchmark KSE-100 index concluded at 45,727 points, reflecting a decline of 204 points from the previous Friday’s closing of 45,931 points.
Market analysts at Arif Habib Limited reported that the market exhibited a range-bound trend during the day, fluctuating between -217 points and +117 points before settling with a decline of 204 points at the close of the session.
Factors Contributing to Market Movement:
1. Profit Booking Across Sectors: The day saw profit booking across multiple sectors, including Exploration & Production (E&P), Fertilizer, Oil & Gas Marketing Companies (O&GMCs), Cement, and banking. This profit-taking activity exerted downward pressure on the market.
2. Crude Price Regression Impact: The regression in international crude oil prices had a negative impact on the sentiment in the E&P sector. Continuous foreign selling in the Fertilizer sector also contributed to pulling down prices.
3. Election Commission’s Decision Anticipation: Investors, in part, attributed the selling pressure to the anticipation of an upcoming decision by the Election Commission regarding the foreign funding case, leading them to book profits cautiously.
Market Performance and Key Sectors:
1. Top Volumes and Scrips: TRG emerged as the leader in terms of volumes, with 47.5 million shares traded, followed by FFL (44.6 million) and KEL (33 million). These scrips collectively accounted for a significant portion of the total volumes.
2. Sectors Impacting Performance: Sectors that contributed to the overall market performance included E&P (-118 points), O&GMCs (34 points), Power (-33 points), Cement (-30 points), and Food (-15 points).
3. Trading Activity and Values: The trading volumes witnessed a slight increase from 531 million shares to 543.6 million shares (2 percent DoD). However, the average traded value experienced a notable 21 percent increase, reaching US$ 134.9 million compared to US$ 111.3 million.
Stock Contributions to Index Movement:
1. Positive Contributors: Stocks that made positive contributions to the index included TRG (+78 points), UBL (+29 points), FABL (+13 points), SHFA (+13 points), and HMB (+10 points).
2. Negative Contributors: Conversely, stocks that contributed negatively included PPL (-43 points), OGDC (-41 points), HUBC (-35 points), POL (-28 points), and LUCK (-22 points).
The diverse factors influencing market dynamics highlight the complexity of the current economic landscape. Investors and market participants continue to navigate through a mix of global and domestic factors, making informed decisions crucial in these challenging times. As the market remains responsive to external events, vigilance and strategic planning become integral components for stakeholders in the stock market.
