The Pakistan Stock Exchange (PSX) experienced a notable turnaround in its performance today. The trading session commenced on a sluggish note, maintaining a stable level through most of the day. However, during the final two hours, the market witnessed a surge in activity, primarily driven by increased buying in specific sectors. The KSE-100 index, a benchmark for market performance, closed at 63,939.41, marking a significant rise of 657.19 points or 1.04%.

TECHNICAL ANALYSIS AND MARKET DYNAMICS

  • Intraday Range: The KSE-100 index demonstrated a dynamic range of 951.15 points, peaking at an intraday high of 64,090.88, and dipping to a low of 63,139.73.
  • Volume and Value of Trades: The trading volume in the KSE-100 index was 197.283 million shares. The broader market observed a total trade volume of 298.7 million shares, with the traded value escalating to PKR 12.52 billion from PKR 9.3 billion in the previous session.
KSE100_2024-01-22_19-01-46
KSE100_2024-01-22_19-01-46

SECTOR-WISE CONTRIBUTIONS AND PERFORMANCE

  • Oil and Gas Sector: This sector emerged as the day’s primary driver, adding a substantial 406.39 points to the KSE-100 index. Reports of potential resolution plans for the circular debt in the energy sector greatly influenced this surge.
  • Commercial Banks and Other Sectors: Banks, along with Oil & Gas Marketing, Power Generation & Distribution, and Fertilizers, also contributed positively, bolstering the overall index.
  • Declining Sectors: On the flip side, the Cement, Technology & Communication, Automobile Assembler, and Chemical sectors experienced a downturn, though their impact was relatively marginal compared to the gains in other areas.

COMPANY-WISE CONTRIBUTIONS AND PERFORMANCE

  • With OGDC and PPL accounting for approximately 8.25% of the KSE-100 overall, these index-heavy companies gained 182.6 and 177.11 points, respectively, and increased by more than 7%.
  • MARI scored 43.17 points, HUBC scored 52.59, and BAHL scored 89.95 points after that.
  • UBL with 11, MTL with 8.99, FCCL with 8.08, CHCC with 7.43, and PAEL with 7.28 points were the companies that pulled the index lower.

INVESTOR SENTIMENT AND MARKET INFLUENCES

  • Confidence in Energy Sector: Investor sentiment was positively influenced by developments in the oil and gas sector. The government’s “dividend plug-in back scheme” shared with the IMF is seen as a positive move, especially for resolving the circular debt problem.
  • Global Market Influence: The performance of Asian markets and a record finish on Wall Street also played a role in shaping investor sentiment at the PSX.

ECONOMIC INDICATORS AND GEOPOLITICAL FACTORS

  • IMF Review and Economic Outlook: The International Monetary Fund’s commendation of Pakistan’s performance under the Standby Arrangement added a layer of confidence in the market. However, geopolitical tensions in the region and their impact on the previous week’s performance remain a factor for investors to consider.

CONCLUSION AND OUTLOOK

Today’s session at the PSX showcased resilience in the face of recent challenges. The market’s reaction to sector-specific developments, especially in the energy sector, and external global market trends, indicates a responsive and dynamic nature. The outlook remains cautiously optimistic, with a keen eye on both domestic economic policies and global market shifts.

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