Share market gains 218 points amid brisk trading

Share market gains 218 points amid brisk trading

The Pakistan Stock Exchange (PSX), country’s share market, concluded the fiscal year on a positive note as the benchmark KSE-100 index surged by 218 points amidst brisk trading on Wednesday.

The market closed at 47,356 points, marking an increase from the previous day’s closing of 47,138 points.

Analysts from Arif Habib Limited noted that the last trading day of the financial year witnessed heightened activity, signaling portfolio adjustments by institutional investors. The banking sector notably experienced robust buying, particularly in MCB and NBP, during the closing half-hour. Additionally, refineries such as PRL and ATRL witnessed renewed interest, injecting vitality into an otherwise sluggish market segment.

However, the technology sector remained subdued, while the exploration and production (E&P) sector rebounded slightly following recent declines. Notable trading volumes were observed in stocks such as SILK, WTL, and TPL, with SILK leading the pack with 44.1 million shares traded, followed closely by WTL with 43 million shares and TPL with 31.7 million shares.

Various sectors contributed to the overall market performance, with gains led by the banking sector (+77 points), followed by E&P (+57 points), and pharmaceuticals (+28 points). Conversely, sectors such as fertilizer (-36 points) and technology (-22 points) weighed on the index.

Despite the positive momentum, trading volumes experienced a marginal decline from 580.7 million shares to 549.5 million shares, representing a 5 percent decrease day-on-day (DoD). Similarly, the average traded value also dipped by 8 percent to US$101 million compared to US$108.9 million previously.

Key stocks driving trading activity included SILK, WTL, TPL, FFL, and PACE, collectively accounting for 32 percent of the total volumes traded.

Contributing positively to the index were stocks such as MCB (+65 points), PPL (+23 points), MARI (+21 points), NBP (+19 points), and BAFL (+17 points). Conversely, stocks that exerted downward pressure on the index included HBL (-49 points), ENGRO (-27 points), TRG (-19 points), CHCC (-12 points), and INDU (-7 points).

Market analysts remain cautiously optimistic about the outlook for the new fiscal year, citing ongoing macroeconomic reforms and improvements in investor sentiment. However, they also underscore the importance of closely monitoring global economic trends and geopolitical developments for potential market implications.

As the new fiscal year unfolds, investors are advised to maintain a diversified portfolio and exercise prudent risk management strategies to navigate potential market volatility and capitalize on emerging opportunities.

For the latest updates and insights into the Pakistan Stock Exchange and financial markets, investors are encouraged to stay informed through reputable financial sources and consult with accredited financial advisors for personalized guidance.