From Zeeshan Mirza
KARACHI: The trading week started on a bearish note, with the Pakistan Stock Exchange (PSX) experiencing a significant drop compared to previous weeks which was marked with high points and investors’ confidence.
The KSE 100 Index marked a sharp decline of 1578 points or 2.01% to reach 78,539 points, three days after it reached an all-time high of 81,800 points during intraday trade.
Today, The market opened with a decline of 391 points, bringing the index down to 79,726 points. As the day progressed, the PSX saw a further drop of 517 points, causing the KSE 100 Index to fall further to the 79,600 points level.
On Friday, the stock market experienced a severe downturn and dropped by 1,721 points to reach 80,117 points but it recovered shortly by Sunday, where bulls staged a comeback and pushed the KSE-100 index to an all-time high above 80,000 points.
PSX experienced a revival of investor interest during the short three-day trading week, where bulls staged a comeback and pushed the KSE-100 index to an all-time high above 80,000 points.
The Pakistan Stock Exchange (PSX) experienced a significant decline and closed at 80,117 after experiencing a significant decline of 1,721 points.
This drop represents a 2.15% decline from yesterday’s all-time high of 81,839 points.
Yesterday, PSX surged to new heights, gaining 684 points to close at an all-time high of 81,839 points. This remarkable 0.84% increase from the previous close of 81,156 points showcases a bullish momentum in the market.
Earlier on Tuesday, Pakistan Stock Exchange (PSX) skyrocketed to an all-time high on Monday in a robust rally driven primarily by Pakistan’s agreement with the International Monetary Fund (IMF) on a $7 billion Extended Fund Facility (EFF) at the weekend as well as the ongoing earnings season.
The day commenced with a spike in the KSE-100 index, which was also supported by the anticipated reduction in the State Bank of Pakistan’s (SBP) policy rate, progress in resolving the energy sector circular debt crisis, increased remittances and stability of the Pakistani rupee.
Notably, the exploration and production (E&P) sector saw significant gains following a major oil and gas discovery at Jhandial-3. As a result, the market reached a remarkable intra-day high of 81,428.43 points. However, the index settled at a lower level than the day’s high.
“Stocks closed at an all-time high as investors weighed the Pakistan-IMF staff-level agreement on a $7 billion Extended Fund Facility,” said Ahsan Mehanti, MD of Arif Habib Corporation.
“Expected easing of the SBP’s policy rate, settlement of energy sector circular debt, surge in remittances and rupee stability played the role of catalysts in record close in an earnings season rally at the PSX.”
At the end of trading, the benchmark KSE-100 index recorded a surge of 1,211.51 points, or 1.52%, and settled at 81,155.61.
Topline Securities, in its report, said that the KSE-100 index showed a strong momentum, reaching its intra-day high of 81,484 points before closing at 81,155, marking a 1.52% increase.
“This positive session was bolstered by Pakistan’s successful negotiations with the IMF, which secured a new $7 billion EFF for 37 months,” it said.
In the E&P sector, Pakistan Oilfields Limited (POL) surged after announcing a significant discovery at Jhandial 3, yielding an average of 715 barrels of oil per day and 8.9 million cubic feet of gas per day.
Leading stocks including Systems Limited, MCB Bank, Fauji Fertiliser, Pakistan Oilfields, Hub Power and Engro Corp contributed significantly, as they collectively added 599 points to the index, Topline said.
Arif Habib Limited (AHL), in its report, commented that the PSX saw a “strong +800-point gap up at the start of the week following the signing of a new 37-month EFF with the IMF amounting to $7 billion, and a 1.5% gain day-on-day.”
Some 65 shares rose while 30 fell with Systems Limited (+5.25%), MCB Bank (+4.06%) and Fauji Fertiliser (+2.71%) providing the biggest upside contribution, AHL said, adding that the National Bank of Pakistan (-2.95%) was the largest drag on the index.
JS Global analyst Mubashir Anis Naviwala wrote that the bourse started the week on a positive note by crossing the 81,000 mark as it reacted positively to the staff-level agreement with the IMF.
“Going forward, we recommend investors to adopt a buy-on-dips strategy with a special emphasis on cement, E&P and technology sectors,” the analyst added.
Overall trading volumes increased to 441.3 million shares compared with Friday’s tally of 437.3 million. The value of shares traded during the day was Rs27.2 billion.
Shares of 457 companies were traded. Of these, 265 stocks closed higher, 141 fell and 51 remained unchanged.
PIA Holding Company was the volume leader with trading in 35.8 million shares, losing Rs1.53 to close at Rs19.01. It was followed by Pak Elektron with 25.8 million shares, gaining Rs1.76 to close at Rs27.18 and WorldCall Telecom with 24.9 million shares, gaining Rs0.01 to close at Rs1.21.
Foreign investors were net buyers of shares worth Rs768.2 million, according to the NCCPL.
