The benchmark KSE-100 index closed Wednesday’s trading session at 63,567.34, marking a modest decrease of 170.13 points or 0.27%. Despite positive economic data, including a significant current account surplus of $387 million in December and a substantial increase in foreign investments worth $243 million, the stock market failed to show significant upward movement. The recent approval of the International Monetary Fund’s second loan tranche also did not have the expected impact.
Key Market Indicators:
- The KSE-100 index traded in a range of 753.69 points during the session, reaching an intraday high of 64,043.87 and a low of 63,290.18 points.
- Total volume of the KSE-100 index was 249.257 million shares.
- Of the 100 index companies, 29 closed up, 64 closed down, 4 remained unchanged, while 3 were untraded.
Sector Performance: Key contributors to the index decline included HUBC (-68.25 points), PPL (-61.27 points), and FFBL (-27.73 points), whereas ENGRO (79.94 points), EFERT (59.13 points), and MEBL (58.48 points) were the notable performers in driving the index upward.
Companies Performance: Top contributors to the index decline were HUBC (-68.25 points), PPL (-61.27 points), and FFBL (-27.73 points), while ENGRO (79.94 points), EFERT (59.13 points), and MEBL (58.48 points) led the index increase.
Market Overview:
- The broader market, represented by the All-Share index, closed at 43,068.53 with a net loss of 105.19 points.
- Total market volume was 420.635 million shares, with a traded value of Rs18.57 billion.
- The All-Share index had 109 companies closing up, 202 closing down, and 18 remaining unchanged.
Market Analysis: The KSE-100’s marginal decline comes despite positive economic indicators and increased foreign investments. The ongoing fiscal year has seen significant market gains, with the KSE-100 index rising by 22,115 points or 53.35%. The State Bank of Pakistan’s recent auction of fixed-rate Pakistan Investment Bonds witnessed a decline in yields, signaling market expectations of a potential decrease in interest rates.
KSE-100 WEEKLY TECHNICAL ANALYSIS
The Pakistan Stock Exchange (PSX) index KSE-100 faced uncertainty in Wednesday’s trading session, with the benchmark KSE-100 Index closing 170 points lower despite a positive start driven by expectations of a rate cut by the State Bank of Pakistan (SBP).
The market initially brushed off concerns about rising tensions between Iran and Pakistan, focusing instead on bond yields. The KSE-100 Index reached an intra-day high of 64,043.86, up by 306.4 points, but investors engaged in profit-taking, leading to a decline to 63,417.30 by 1:40 pm, down 320.16 points or 0.50%.
Late-session buying helped trim losses, and the index settled at 63,567.34, down 170.13 points or 0.27%. Market experts attribute the earlier surge to a rebound after a fall in bond yields. The impact of Iranian missile strikes targeting Jaish al Adl bases in Pakistan and subsequent regional tension was observed, but the market primarily reacted to profit-taking.
The rupee marginally appreciated by 0.05% against the US dollar, closing at 280.1 in the inter-bank market. The trading session saw increased volume at 421.3 million shares, while the value of shares declined to Rs18.5 billion. Notable volume leaders included P.T.C.L., K-Electric Ltd., and Treet Corp.
MARKET NEWS
Pakistan has decided to recall its ambassador from Iran and suspend all ongoing or planned high-level visits between the two countries. The decision follows what the Foreign Office (FO) termed an “unprovoked violation of its airspace” by Tehran. Iran, however, asserts that it targeted an “Iranian terrorist group” and emphasizes that no Pakistani nationals were harmed.
Pakistan’s Real Effective Exchange Rate (REER), a vital indicator of a currency’s value against a weighted average of various foreign currencies, has experienced a slight increase. Data released by the State Bank of Pakistan (SBP) on Wednesday revealed a REER of 98.86 in December 2023, up from 98.27 in November 2023.
Pakistan’s current account has posted a substantial surplus of $397 million in December 2023, a stark contrast to the $15 million deficit recorded in November. This positive shift is attributed to increased exports and remittances, coupled with a marginal decline in imports.
The United Arab Emirates (UAE) has officially confirmed the extension of its two deposits, each amounting to US$1.0 billion, placed with the State Bank of Pakistan. These deposits, originally set to mature in January 2024, will now undergo a rollover for another one year.
State Bank of Pakistan (SBP) has formally acknowledged the second installment of SDR 528 million, or a substantial $705.6 million, from the International Monetary Fund (IMF).
Gold Price Pakistan market today: the price of 24-karat gold in Pakistan experienced a significant drop, plummeting by Rs2,000 per tola to reach Rs215,300.
