Market Recap: KSE-100 Declines, PKR Weakens, Gold Prices Surge
In a notable turn of events on Wednesday, the Pakistan Stock Exchange (PSX) witnessed a significant downturn as the KSE-100 index declined by 681.19 points, closing at 74,836.30. Concurrently, the Pakistani Rupee (PKR) saw a depreciation against the US Dollar, while gold prices surged significantly. Here’s a comprehensive analysis of these key financial developments.
KSE-100 Index Performance
Closing Details
The KSE-100 index ended Wednesday’s trading session at 74,836.30, showing a decrease of 681.19 points or 0.9%. The index traded in a range of 907.21 points, indicating an intraday high of 75,667.31 (+149.82) and a low of 74,760.10 (-757.39) points. The total volume of the KSE-100 index was 192.58 million shares.
Market Movements
- Declining Sectors: The major sectors that dragged the index down included Oil & Gas Exploration Companies (209.08pts), Commercial Banks (137.91pts), Fertilizer (110.09pts), Cement (63pts), and Technology & Communication (37.65pts).
- Supporting Sectors: On the flip side, sectors such as Leather & Tanneries (32.77pts), Chemical (13.97pts), Miscellaneous (11.56pts), Insurance (7.17pts), and Tobacco (4.88pts) provided some support.
Major Influencers
- Negative Contributors: Key companies that negatively impacted the index included OGDC (89.93pts), PPL (68.25pts), BAHL (63.39pts), FFC (57.46pts), and ENGRO (44.32pts).
- Positive Contributors: Companies that added points to the index were SRVI (32.77pts), LCI (18.96pts), PSEL (18.41pts), FABL (13.28pts), and MUGHAL (10.95pts).
Broader Market
In the broader market, the All-Share index closed at 48,419.47 with a net loss of 490.37 points. Total market volume was 408.07 million shares compared to 446.07 million in the previous session, while traded value was recorded at Rs16.50 billion, showing an increase of Rs67.83 million. There were 200,489 trades reported in 405 companies with 85 closing up, 277 closing down, and 43 remaining unchanged.
Top Ten by Volume
- K-Electric Limited (KEL) led the volume with 38,647,880 shares.
- WorldCall Telecom Limited (WTL) followed with 22,383,107 shares.
- Dewan Farooque Motors Limited (DFML) traded 19,354,593 shares.
- Dewan Cement Limited (DCL) traded 15,920,722 shares.
- First Abu Dhabi Bank (FABL) saw 14,492,357 shares exchanged.
PAKISTANI RUPEE PERFORMANCE (USD TO PKR)
The Pakistani Rupee (PKR) depreciated by 10.31 paisa against the US Dollar in Wednesday’s interbank session, settling at PKR 278.4 per USD compared to the previous session’s closing of PKR 278.3 per USD. The currency saw an intraday high (bid) of 278.5 and a low (ask) of 278.25.
Exchange Rates Against Major Currencies
- Euro: PKR gained 11.09 paisa, closing at 301.73 compared to 301.84.
- British Pound: PKR lost 88.3 paisa, closing at 355.27 compared to 354.39.
- Swiss Franc: PKR gained 1.01 rupees, closing at 305.07 compared to 304.05.
- Japanese Yen: PKR gained 0.2 paisa, closing at 1.7716 versus 1.7736.
- Chinese Yuan: PKR remained unchanged, closing at 38.41.
- Saudi Riyal: PKR gained 2.55 paisa, closing at 74.23 compared to 74.2.
- U.A.E Dirham: PKR increased by 2.39 paisa, closing at 75.77 compared to 75.8.
Financial Year and Calendar Year Performance
During the current financial year, the PKR has appreciated against the Dollar by 7.59 rupees or 2.73%. The ongoing calendar year has seen an appreciation of 3.46 rupees or 1.24%.
GOLD PRICES SURGE
Gold prices in Pakistan experienced a significant increase on Wednesday, with the price of 24-karat gold rising by Rs2,400 to Rs242,700 per tola. This surge reflects a significant move in the local market, driven by both domestic and international factors.
Gold Rates in Pakistan
- 24-Karat Gold: The price increased by Rs2,400 to Rs242,700 per tola.
- 10-Gram Gold: The price of 24-karat gold rose to Rs208,076, up by Rs2,058.
- 22-Karat Gold: The price was quoted higher at Rs190,736 per 10-gram.
Silver Prices
Silver prices also surged in line with international trends:
- 24-Karat Silver: Sold at Rs2,900 per tola and Rs2,486.28 per 10-gram, with gains of Rs100 per tola and Rs85.74 per 10-gram.
Global Market Influence
On the global front, spot gold traded near $2,345.04, down 0.66% from the previous close. Spot silver held near $32 an ounce after closing 1.36% higher the previous day. Investors are cautious as they assess the diminishing bets on U.S. interest rate cuts ahead of a key inflation report due later in the week.
The Federal Reserve’s recent policy minutes indicated that officials plan to keep interest rates higher for longer to manage inflation. This outlook is bearish for gold, as higher interest rates increase the opportunity cost of holding non-yielding assets like gold.
MARKET ANALYSIS AND OUTLOOK
Stock Market Trends
The significant decline in the KSE-100 index indicates market volatility driven by sector-specific performance and broader economic factors. The losses in major sectors such as Oil & Gas, Commercial Banks, and Fertilizers reflect underlying pressures in these industries. Conversely, gains in Leather & Tanneries and Chemicals suggest pockets of resilience within the market.
Currency Exchange Dynamics
The depreciation of the PKR against the USD reflects ongoing challenges in the foreign exchange market, influenced by global economic conditions and domestic economic policies. The mixed performance against other major currencies highlights the complexities of currency movements in response to international economic developments.
Precious Metals Market
The surge in gold prices underscores the safe-haven demand amidst economic uncertainty and fluctuating interest rate expectations. The alignment with international price movements suggests that global market trends continue to influence local gold prices significantly.
