PSX SUMMARY: Pakistani stocks declined on Wednesday, wiping out gains from the previous session as the market braces for the upcoming monetary policy meeting. The KSE-100 Index closed at 78,651.79, down by 634.94 points or 0.80% erasing previous day’s gains, driven by late-session profit-taking. Investors are anticipating the third consecutive interest rate cut by the State Bank of Pakistan (SBP) in its meeting tomorrow.
INVESTORS EXPECT A SMALLER RATE CUT
The SBP has already reduced rates by a total of 250 basis points in its last two meetings. However, expectations of a more modest 150 basis points cut this time, compared to previous hopes for a larger reduction, have contributed to the market’s decline.
Additionally, there has been no progress on the International Monetary Fund’s (IMF) executive board approval of Pakistan’s $7 billion bailout package, keeping investors cautious. Despite a staff-level agreement reached in July, the deal still requires approval and financing assurances from Pakistan’s development partners.
MARKET PERFORMANCE
Throughout the day, the KSE-100 Index traded within a range of 895.01 points, reaching an intraday high of 79,507.17 and a low of 78,612.16 points. The total volume of shares traded on the KSE-100 was 146.52 million.
- Top losers: YOUW (-3.72%), HMB (-3.62%), BNWM (-3.04%), MLCF (-3.03%), and PGLC (-2.84%).
- Top gainers: EFUG (+6.74%), PAEL (+4.56%), CEPB (+3.18%), POML (+2.58%), and AVN (+2.56%).
SECTOR PERFORMANCE
The sectors that dragged the index lower included:
- Commercial Banks: -293.40 points
- Fertilizer: -141.36 points
- Oil & Gas Exploration Companies: -72.76 points
- Power Generation & Distribution: -36.34 points
- Automobile Assembler: -35.40 points
Sectors that provided some support included:
- Cable & Electrical Goods: +16.09 points
- Investment Banks/Companies: +15.87 points
- Insurance: +12.20 points
- Paper, Board & Packaging: +2.13 points
- Close-End Mutual Fund: +1.28 points
In terms of point contributions, companies that weighed on the index were MARI (-71.05 points), BAHL (-64.01 points), MCB (-62.39 points), MEBL (-60.88 points), and EFERT (-56.78 points). On the positive side, OGDC (+20.53 points), DAWH (+17.11 points), PAEL (+16.09 points), NBP (+12.28 points), and EFUG (+12.13 points) provided support.
BROADER MARKET PERFORMANCE
The broader All-Share Index also declined, closing at 50,777.65 with a loss of 264.23 points or 0.52%. The total market volume increased to 532.73 million shares, with a traded value of Rs. 14.74 billion.
- Top Volume Leaders: WTL (-1.32%, 80.93m shares), PAEL (+4.56%, 42.59m shares), WAVESAPP (+10.95%, 34.02m shares).
KSE-100 YTD PERFORMANCE
Despite the dip, the KSE-100 Index has gained 207 points or 0.26% in the current fiscal year and has seen a notable increase of 16,201 points, equivalent to 25.94%, in the ongoing calendar year.
