MARKET DOWNTURN AS KSE-100 INDEX SLIPS NEARLY 500 POINTS IN TODAY’S SESSION

WIDESPREAD SELL-OFF HITS PAKISTAN’S STOCK MARKET

Today’s trading session in Pakistan’s stock market saw a significant sell-off, affecting a broad range of stocks. The KSE-100 index, a benchmark for market performance, closed at 63,813.06. This represents a drop of 484.94 points or 0.75%. As previously mentioned the index faces resistance from its previous top. 

During the session, the index experienced substantial fluctuations, trading within a range of 790.90 points.

The KSE-100 reached an intraday high of 64,534.30, gaining 236.29 points, but also dipped to a low of 63,743.40, losing 554.60 points. The total volume of shares traded in the KSE-100 was 212.491 million.

SECTOR-WISE PERFORMANCE

Out of the 100 indexed companies, 22 closed higher, 71 ended lower, 7 remained unchanged.

The index’s decline was largely attributed to losses in key sectors: Commercial Banks dropped by 134.79 points, Fertilizer by 131.89 points, Technology & Communication by 62.23 points, Cement by 51.37 points, and Power Generation & Distribution by 35.67 points.

Conversely, certain sectors provided support to the index, albeit modestly. Oil & Gas Exploration Companies added 43.52 points, followed by Automobile Assembler with 13.48 points, Cable & Electrical Goods with 2.34 points, Sugar & Allied Industries with 0.88 points, and Real Estate Investment Trust with 0.84 points.

COMPANY-WISE CONTRIBUTIONS

On the downside, companies like MARI, FFC, MEBL, HBL, and BAHL were major contributors to the index’s fall. In contrast, OGDC, HMB, INDU, ABL, LCI and MTL were among the few that positively impacted the KSE-100 index.

BROADER MARKET OVERVIEW

The All-Share index also closed in the negative, with a net loss of 169.32 points, settling at 43,213.11. The total market volume was 412.823 million shares, down from the previous session’s 460.691 million shares. The traded value decreased to Rs16.19 billion, a reduction of Rs9.07 billion.

In terms of trading activity, there were 167,655 trades reported across 341 companies. Out of these, 98 closed higher, 221 lower, and 22 remained unchanged.

TOP TEN BY VOLUME

1. PIAA: 66,176,000 shares
2. KEL: 47,105,158 shares
3. OGDC: 31,070,396 shares
4. PPL: 20,139,069 shares
5. HASCOL: 18,825,000 shares
6. WTL: 17,050,152 shares
7. PIBTL: 16,538,000 shares
8. CNERGY: 13,583,150 shares
9. PTC: 11,459,261 shares
10. FFL: 10,432,914 shares

YEARLY MARKET PERFORMANCE

Reflecting on the fiscal year, the KSE-100 has gained a significant 22,360 points or 53.94%. In the current calendar year, the index has seen a cumulative increase of 1,362 points, amounting to 2.18%.

MARKET SWINGS

PAKISTANI RUPEE’S CONTINUED ASCENT

The Pakistani rupee (PKR) achieved another milestone this week ending January 26, 2024, gaining a modest 30 paisa against the US dollar. The local currency improved slightly, settling at PKR 279.59, compared to last week’s PKR 279.9 per USD.

Gold rates in Pakistan saw a notable increase on Friday, aligning with the rise in global gold prices. The price of gold per tola reached Rs214,200 in the local market, marking a Rs400 increase within a day.

As the world’s gaze turns to the fluctuating oil market, we witness the subtle yet impactful shifts that are shaping the industry. Despite a minor easing of prices, the market is poised for its most significant weekly gain since last October. This trend is underpinned by the positive US economic outlook and potential economic stimulus from China, both key drivers of global fuel demand.