The Pakistan Stock Exchange (PSX) extended its positive momentum on Tuesday, as the KSE-100 Index gained 366.32 points (+0.40%) to close at 92,304.32. This uptick followed the State Bank of Pakistan’s decision to reduce the policy rate by 250 basis points, bringing the rate to 15% in a move aimed at fostering economic growth amid slowing inflation.
Market Performance Highlights
- Intraday Range: The KSE-100 Index saw a trading range of 978.21 points, hitting an intraday high of 92,514.30 and a low of 91,536.09.
- Volume: Total volume for the KSE-100 was 289.41 million shares, showing active trading interest.
- Sector Contributions: Automobile Assemblers, Power Generation & Distribution, Cement, Technology & Communication, and Oil & Gas Exploration Companies sectors were key drivers of the index. However, sectors like Commercial Banks, Oil & Gas Marketing Companies, and Leather & Tanneries applied downward pressure on the index.
Top Movers by Points Contribution
- Top Gainers: Companies like Lucky Cement (LUCK), Hub Power Company (HUBC), Oil & Gas Development Company (OGDC), Systems Limited (SYS), and Millat Tractors Limited (MTL) provided the highest positive contributions to the index.
- Top Losers: United Bank Limited (UBL), Habib Bank Limited (HBL), Bank Al Habib Limited (BAHL), Cherat Cement (CHCC), and Meezan Bank Limited (MEBL) were among the stocks that weighed down the index.
Top Performers
- Top Gainers by Percentage: FCEPL, EPCL, PTC, HCAR, and AICL were among the best performers, each posting notable gains.
- Top Losers by Percentage: BNWM, IBFL, MUGHAL, SCBPL, and UPFL saw the highest percentage losses, indicating a mixed sentiment across different stocks.
Market Breadth and Broader Market Trends
- All-Share Index: The broader market, represented by the All-Share Index, also ended in the green, closing at 58,659.44 with a gain of 251.31 points (+0.43%).
- Market Volume and Value: Total market volume climbed to 752.66 million shares (up from 589.55 million in the prior session) with a traded value of Rs32.83 billion, reflecting increased investor activity.
Top Ten Volume Leaders
- POWER: Led the market with a volume of 66.26 million shares, rising by 9.41% to close at Rs7.79.
- SSGC: Followed closely, increasing by 10.03% with 51.96 million shares traded, closing at Rs16.68.
- Other high-volume stocks included FFL, PIAHCLA, MLCF, PTC, FCCL, FLYNG, HUBC, and KEL, each drawing strong interest from investors.
Market Trends and Year-to-Date Performance
The KSE-100 Index has shown significant gains both in the fiscal year and calendar year, rising by 13,859 points (+17.67%) during the fiscal year and gaining 29,853 points (+47.80%) so far in 2024. The sustained rally reflects investor optimism, boosted by monetary easing and improving macroeconomic indicators, with positive contributions from a diverse set of sectors.
Market Trends
In Tuesday’s trading session, the Pakistani Rupee (PKR) saw a slight depreciation against the US Dollar in the interbank market, closing at PKR 277.84, down by 5.03 paisa or 0.02%. During the day, PKR moved within a narrow range, with an intraday high bid of 277.95 and a low ask of 277.85, indicating cautious trading sentiment amid broader market uncertainties.
Domestic Gold Market Update
Gold prices in Pakistan dropped, with 24-karat gold now priced at Rs283,200 per tola, a decrease of Rs500. Similarly, the price for 10 grams of 24-karat gold fell by Rs429 to Rs242,798. The rate for 22-karat gold also declined to Rs222,565 per 10 grams, reflecting a downtrend in response to local and international market influences.
Global Gold Market Overview
Globally, gold prices held steady around the $2,735 per ounce mark. Safe-haven demand has remained strong due to a combination of factors, including the tight U.S. presidential election race and escalating geopolitical tensions in the Middle East. These developments have bolstered gold’s appeal as a hedge against volatility, as investors navigate an environment marked by political and economic uncertainty.
Additionally, expectations of further rate cuts by the U.S. Federal Reserve and the unwinding of the “Trump trade” have pressured U.S. Treasury yields and weakened the USD, further supporting gold. This backdrop has kept gold in favor among investors seeking stability amid potential market swings.
