The Pakistan stock market experienced a positive trend on January 23, 2024, as it prepared for the start of the earnings season, with traders anticipating favourable results. The Pakistan stock market’s performance reflects a positive momentum, buoyed by expectations of strong earnings reports and supportive sectoral contributions.
As the market eagerly awaits the upcoming meeting of the State Bank of Pakistan’s Monetary Policy Committee on January 29, 2024, there is a palpable sense of anticipation. The consensus expectation of the interest rates remaining steady is indicative of a desire for stability and sustained growth in the financial sector. This is especially noteworthy considering the MPC’s decision to maintain the interest rate at 22% since December 2023, a move that has likely contributed to the market’s current stability and optimism.
To make decisions regarding the Monetary Policy, the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) will convene on Monday, January 29, 2024. It is important to highlight that the expectation among market participants is that interest rates will remain unchanged by the central bank.
KEY HIGHLIGHTS FROM THE SESSION:
- KSE-100 Index Performance: The benchmark KSE-100 index closed at 64,454.22, marking an increase of 514.81 points or 0.81%.
- Trading Range: The index fluctuated within a range of 1,108.56 points, reaching an intraday high of 64,658.17 (+718.76) and a low of 63,549.61 (-389.81) points.
- Volume and Company Performance: The total volume for the KSE-100 index was 261.113 million shares. Out of the 100 index companies, 65 closed up, 26 closed down, 4 remained unchanged, and 5 were untraded.
- Sector Contributions: Significant support to the index was provided by sectors such as Commercial Banks, Fertilizer, Technology & Communication, Refinery, and Oil & Gas Exploration Companies.
- Top Contributors: Companies like EFERT, BAHL, MARI, OGDC, and MEBL added significant points to the index.
- Declining Sectors and Companies: On the other hand, sectors like Oil & Gas Marketing Companies, Automobile Assembler, Synthetic & Rayon, Power Generation & Distribution, and Chemical pulled the index down. Companies like PPL, LUCK, PSO, SYS, and MTL had a negative impact on the index.
BROADER MARKET AND FINANCIAL RESULTS:
- All-Share Index: The All-Share index closed at 43,461.63, gaining 243.73 points.
- Market Volume and Value: The total market volume rose to 425.710 million shares with a traded value of Rs25.00 billion, showing an increase of Rs12.48bn from the previous session.
- Fauji Foods Limited Report: Fauji Foods Limited (FFL) reported a profit of Rs605.11 million, a significant improvement from the loss recorded in the same period last year.
YEARLY AND CALENDAR YEAR PERFORMANCE:
- Fiscal Year Gain: The KSE-100 has gained 23,002 points or 55.49% during the fiscal year.
- Calendar Year Increase: The ongoing calendar year has witnessed a cumulative increase of 2,003 points, equivalent to 3.21%.
The significant gain in the fiscal year, with the KSE-100 index rising 55.49%, alongside the 3.21% increase in the ongoing calendar year, underscores the market’s resilience and adaptability in a dynamic economic landscape. Furthermore, the positive financial results from companies like Fauji Foods Limited, which turned around from a loss to a profit, mirror the broader market’s trajectory of recovery and progress.
Overall, the Pakistan stock market’s current trajectory bodes well for its future, painting a picture of a market that is not only navigating the challenges of the global economic environment but also capitalizing on opportunities for growth and development. The upcoming monetary policy decision will be a critical moment that could further influence the market’s direction, adding another layer to its complex yet promising economic narrative.
