In the aftermath of the federal budget announcement for the fiscal year 2023-24, Pakistan’s stock market is poised for a potential reaction to the government’s budgetary measures.
Presented on June 9, 2023, the budget has introduced certain measures that may have a negative impact on the stock market.
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Last week, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) exhibited a noteworthy 1.33 percent increase on a week-on-week (WoW) basis. This surge can be attributed to the pre-budget rally, wherein investor interest was particularly observed in the chemical, technology, OMCs (Oil Marketing Companies), textile, and refines sectors. These sectors witnessed increases of 13 percent, 3 percent, 3 percent, 3 percent, and 3 percent respectively on a WoW basis.
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During the week, the average daily traded volume amounted to 217 million shares, with a total value of Rs. 6 billion. Notably, foreign corporate entities, broker prop books, companies, and individuals collectively purchased equities worth $1.61 million, $0.70 million, $0.67 million, and $0.43 million respectively, as of the close of the previous trading session. Conversely, mutual funds and insurance companies sold equities worth $3.63 million and $0.41 million respectively.
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As investors assess the impact of the budgetary measures on the stock market, all eyes are on the upcoming week’s trading activities. Market participants will closely monitor how the stock market reacts to the government’s budgetary decisions, which are anticipated to shape the trajectory of the market in the coming days.
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