KSE-100 gains 204 points amid selling pressure

KSE-100 gains 204 points amid selling pressure

KARACHI: The Pakistan Stock Exchange (PSX) experienced a modest gain of 204 points on Tuesday, closing at 40,624 points, up from 40,420 points the previous day.

The benchmark KSE-100 index exhibited fluctuations throughout the day, ranging between -113 points and +228 points. While the overall sentiment remained positive, blue-chip stocks faced selling pressures, indicating a degree of market nervousness.

Analysts at Arif Habib Limited observed that major players like HBL (Habib Bank Limited) and UBL (United Bank Limited) spent most of the trading session in the red within a narrow band. UBL’s announcement of the closure of its New York branch contributed to a bearish stance among investors.

In a notable shift, the top 10 volume leaders comprised small and mid-cap stocks, with blue-chip stocks failing to generate substantial trading volumes. Notably, the E&P (Exploration and Production) sector, led by OGDC (Oil & Gas Development Company Limited), initially witnessed price growth. However, this enthusiasm waned as the session progressed.

Sectors contributing to the day’s performance included E&P (+62 points), Fertilizer (+39 points), O&GMCs (Oil & Gas Marketing Companies, +39 points), Power (+21 points), and Autos (+19 points). The overall trading volumes rebounded from 126 million shares to 154 million shares, reflecting a 23% day-on-day increase.

Moreover, the average traded value surged by 33% day-on-day, reaching $49.2 million, compared to $36.9 million on the previous trading day. DCL, PIAA, FFL, UNITY, and NRSL emerged as significant contributors to the increased volumes, collectively constituting 25% of the total traded shares.

Stocks making positive contributions to the market included PPL (Pakistan Petroleum Limited, +29 points), OGDC (+29 points), EFERT (Engro Fertilizers Limited, +19 points), PSO (Pakistan State Oil, +19 points), and HUBC (Hub Power Company Limited, +18 points). On the flip side, stocks that negatively impacted the market included HBL (-14 points), PIBTL (Pakistan International Bulk Terminal Limited, -6 points), POL (Pakistan Oilfields Limited, -6 points), NBP (National Bank of Pakistan, -5 points), and KTML (Kohat Textile Mills Limited, -5 points).

Despite the challenges posed by selling pressures in blue-chip stocks, the overall market managed to close on a positive note. The resilience of small and mid-cap stocks, coupled with positive contributions from various sectors, reflects a dynamic and evolving landscape in the Pakistani equity market. Investors will be closely monitoring future developments to gauge the market’s response to ongoing economic and geopolitical factors.