The Pakistan stock market recently faced a significant downturn, with the KSE-100 index experiencing a sharp decline. This article provides an in-depth look into the factors contributing to the market’s current state, sector performances, and the broader economic context affecting investor decisions. As, we have several times mentioned that the uncertainties don’t disappear in thin air with a ‘Poof’ such elections outcomes. Moreover, we still have a strong volume for bulls to totally take a charge of KSE-100. In the previous session!

KSE100_2024-03-12_16-19-41

KSE-100 INDEX PERFORMANCE

The KSE-100 index, a benchmark for market performance, saw a notable drop of 953.60 points, or 1.45%, closing the session at 64,801.7. Throughout the day, the index fluctuated within a range of 1,194.97 points, peaking at 65,859.64 before dropping to a low of 64,664.67. Trading volume for the index reached approximately 126.991 million shares, highlighting the market’s volatility.

PSX KSE-100 (AS OF MAR 12, 2024 2:15 PM)

 

MetricValue
Index Level64,801.70
Change-953.60 (-1.45%)
High65,859.63
Low64,664.66
Volume126,990,658
1-Year Change54.82%
YTD Change0.22%
Previous Close65,755.30
Day Range64,664.66 — 65,859.63
52-Week Range39,482.17 — 67,093.96

 

MARKET SENTIMENT AND SECTOR IMPACTS

A widespread sell-off characterized the day’s trading, affecting the majority of stocks. Out of 100 index companies, 80 saw their stock prices decline, while only 8 recorded gains. The remaining companies either saw no change or did not trade.

Sector analysis revealed that Oil & Gas Exploration Companies, Investment Banks, Securities Companies, Cement, Refinery, and Fertilizer sectors contributed most to the index’s fall. Conversely, only the Leather & Tanneries and Miscellaneous sectors managed to post gains.

ECONOMIC CONTEXT AND POLICY OUTLOOK

The market’s downturn occurs amidst anticipation of the International Monetary Fund’s (IMF) final review of the Stand-By Arrangement (SBA), with discussions set to begin on March 14. This review has stirred concerns about potential stringent measures the IMF might demand.

Furthermore, the recent appointment of Muhammad Aurangzeb as Finance Minister has been met with optimism. His extensive experience in the financial sector is seen as a crucial asset in navigating Pakistan through its economic challenges.

INFLUENTIAL COMPANIES AND BROADER MARKET PERFORMANCE

Several companies played significant roles in the day’s market movements. DAWH, OGDC, PPL, HUBC, and ENGRO were among the top contributors to the index’s decline, whereas PSEL, NBP, SRVI, MCB, and MEBL provided some support.

The broader market also felt the impact, with the All-Share index closing down by 619.65 points. Total market volume decreased significantly from the previous session, and the majority of trades ended in the red.

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