KARACHI: The Pakistan stocks closed higher by 67 points on Wednesday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 44,955 points compared to 44,888 points in the previous session. Despite the gain, trading remained range-bound due to concerns over rising COVID-19 cases and escalating global oil prices.
Analysts at Arif Habib Limited observed that investor sentiment was cautious, leading to subdued market activity. The cement sector stayed in the negative territory following a dismal performance report. Cement dispatches for January 2022 fell by 19% year-on-year to 3.85 million tons, with domestic dispatches declining 18% due to slowed construction activity. The sector’s poor performance weighed on stocks like Lucky Cement and DG Khan Cement, which saw limited recovery.
In the fertilizer sector, FFBL hit its lower circuit after announcing disappointing financial results. This added to the subdued sentiment on the main trading board, which saw little improvement throughout the session.
However, on the positive side, buying interest emerged in the final trading hour, driven by corporate results and bargain hunting. Stocks in the Technology sector, including TRG Pakistan, added 15.1 points to the index, while Chemicals contributed 25.8 points. Other sectors such as Commercial Banks (+20.2 points), Investment Banks (+14.8 points), and Cement (+10.6 points) also supported the market’s upward momentum.
Volume activity in the stock market remained sluggish, with trading volumes dropping by 33.7% to 137.3 million shares compared to 207 million shares in the previous session. Similarly, the traded value declined 33.9% to $30.3 million from $45.9 million.
Among the most active stocks, TRG, GGL, TPL Properties (TPLP), WorldCall Telecom (WTL), and Cnergyico (CNERGY) led the volume chart, reflecting heightened investor interest in third-tier stocks.
Despite these mixed signals, the market showed resilience by ending on a positive note, driven by late value buying. Analysts remain cautiously optimistic, suggesting that corporate earnings and macroeconomic developments will continue to shape the stock market’s trajectory in the coming sessions.
