This week, the Pakistan Stock Market witnessed significant volatility driven by intensified rumors of a high tax imposition on capital markets in the upcoming budget. The KSE-100 index experienced substantial fluctuations, ultimately closing the week with notable movements.
MIDWEEK SELLOFF AND RECOVERY
On Friday, rumors reached a peak, triggering a selloff that pushed the KSE-100 index below the 72,000 mark. However, the bulls stepped in, aiding a recovery that saw the index close at 73,754 by the end of the week. Despite this recovery, the index recorded a weekly decline of 2,124 points, or 2.8% in USD terms.
PERFORMANCE OVERVIEW
The KSE-100 index has shown remarkable resilience over the fiscal year, with an impressive 78% increase to date and an 18% rise since January. This performance is largely attributed to the International Monetary Fund’s rescue package around Eid-ul-Adha last year, which helped steer the country away from a sovereign debt default.
Throughout the week, the KSE-100 index traded within a wide range of 4,428 points, hitting a high of 76,210 points and a low of 71,782 points.
TRADING VOLUME AND MARKET CAPITALIZATION
The Pakistan Stock Exchange (PSX) recorded an average traded volume of 423.32 million shares worth Rs17.17 billion. This marks a 5.3% week-on-week decrease in the number of shares traded, while the traded value saw a slight increase of 0.4%.
Market capitalization decreased by $939.62 million, or 2.6%, to $35.6 billion over the week. In PKR terms, the market capitalization stood at Rs9.9 trillion.
ANTICIPATION AHEAD OF MONETARY POLICY MEETING
Investors are closely watching the upcoming monetary policy meeting scheduled for Monday, where the central bank is expected to start an easing cycle after nearly four years. This decision will precede the federal budget for 2024-25.
ECONOMIC HIGHLIGHTS
On the economic front, Pakistan recorded its highest ever monthly workers’ remittance inflows in May, amounting to $3.24 billion, a year-on-year increase of 54.2%.
TOP INDEX MOVERS
Sector-wise, the top negative contributions came from:
- Commercial Banks (-788 points)
- Oil & Gas Exploration Companies (-497 points)
- Fertilizer (-215 points)
- Technology & Communication (-125 points)
- Power Generation & Distribution (-124 points)
Positive contributions came from:
- Automobile Assembler (+59 points)
- Pharmaceuticals (+19 points)
- Automobile Parts & Accessories (+6 points)
- Cement (+5 points)
- Miscellaneous (+1 point)
WORST-PERFORMING AND BEST-PERFORMING STOCKS
The worst-performing stocks during the week were:
- MEBL (-227 points)
- OGDC (-199 points)
- HBL (-133 points)
- SYS (-125 points)
- MARI (-122 points)
On the other hand, the stocks that added points to the index were:
- MTL (+67 points)
- LUCK (+34 points)
- TRG (+21 points)
- SEARL (+13 points)
- SHEL (+10 points)
FOREIGN AND LOCAL INVESTORS’ ACTIVITY
Foreign investors continued to show interest, buying shares worth $4.44 million. Insurance companies were the dominant buyers, with a net investment of $6.98 million, primarily directed towards the Fertilizer sector ($2.36 million). They divested from the Technology and Communication sector, with sales amounting to $0.15 million.
Conversely, individual investors were the leading sellers, with net sales of $8.92 million, primarily in Commercial Banks ($3.59 million), while acquiring $0.49 million in the Oil and Gas Exploration Companies sector.
GOLD PRICE AND CURRENCY UPDATES IN PAKISTAN
GOLD PRICES REMAIN STEADY AMID MARKET VOLATILITY
On Friday, gold prices in Pakistan remained unchanged, with 24-karat gold being sold at Rs243,000 per tola. This stability follows a significant trend, with prices kept Rs4,000 below their actual cost due to reduced purchasing power.
- 24-Karat Gold: Rs243,000 per tola
- 24-Karat Gold (10 grams): Rs208,333
- 22-Karat Gold (10 grams): Rs190,972
Silver prices also saw no changes in the domestic market:
- 24-Karat Silver: Rs2,800 per tola
- 24-Karat Silver (10 grams): Rs2,401
GLOBAL GOLD MARKET
On the global front, spot gold traded near $2,310 an ounce, down $66.6 or 2.80% from the previous session.
CURRENCY MARKET MOVEMENTS
The Pakistani rupee (PKR) appreciated by 19.03 paisa against the US dollar in Friday’s interbank session, settling at PKR 278.2 per USD, compared to the previous session’s closing of PKR 278.39 per USD.
- Intraday High (Bid): PKR 278.75
- Intraday Low (Ask): PKR 278.65
WEEKLY PERFORMANCE
On a weekly basis, the local currency gained 13 paisa against the USD.
OPEN MARKET EXCHANGE RATES
- USD: 277.75 (buying), 280.50 (selling)
- EUR: PKR 302.96, losing 23.82 paisa
- GBP: PKR 356.04, gaining 17.41 paisa
- CHF: PKR 312.67, gaining 76.77 paisa
- JPY: PKR 1.7892, losing 0.87 paisa
- CNY: PKR 38.41, losing 0.53 paisa
- SAR: PKR 74.18, losing 5.07 paisa
- AED: PKR 75.79, losing 5.28 paisa
PKR APPRECIATION IN FYTD AND CYTD
- FYTD: Appreciated by PKR 7.79 or 2.8%
- CYTD: Appreciated by PKR 3.66 or 1.32%
MONEY MARKET UPDATE
The benchmark 6 Month Karachi Interbank Bid and Offer rates edged down by 3 basis points to 20.45% and 20.7%, respectively.
STATE BANK OF PAKISTAN OPERATIONS
The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah Compliant Modarabah based Open Market Operation (OMO), injecting a total of Rs10.61 trillion into the market.
