Pakistan stocks continued their bullish trend on Monday, as the benchmark KSE-100 index surged by 713.61 points or 0.98%, concluding the trading session at 73,799.11. Throughout the day, the index remained positive, reaching an intraday high of 74,114.23 and a low of 73,109.76 points. The total volume of the KSE-100 index stood at 308.96 million shares.
The optimism in the market comes amidst expectations for a potential rate cut as early as June, following a fourth consecutive decline in weekly inflation. Analysts anticipate the Consumer Price Index (CPI)-based inflation for May to decrease to approximately 14-15% year-on-year, which would expand real interest rates to 7-8%.
Finance Minister Muhammad Aurangzeb recently announced the initiation of formal discussions between Pakistan and the International Monetary Fund (IMF) for a longer and larger program. Aurangzeb underscored the objectives of the program, emphasizing the need to solidify existing macroeconomic stability and implement structural reforms. These reforms will primarily target three key sectors: enhancing the tax-to-GDP ratio, reforming state-owned enterprises (SOEs), and addressing issues within the energy sector.
The positive sentiment in the stock market reflects investor confidence in the potential for economic stability and growth, driven by anticipated policy measures and reforms aimed at strengthening Pakistan’s economic fundamentals. As discussions with the IMF progress and reforms are implemented, market dynamics are likely to remain dynamic, with investors closely monitoring developments for further insights into Pakistan’s economic trajectory.
MARKET REPORT: KSE-100 INDEX SHOWS MIXED PERFORMANCE IN MONDAY’S TRADING SESSION
In Monday’s trading session, the Pakistan Stock Exchange witnessed a mixed performance as the KSE-100 index closed with a blend of gains and losses. Of the 100 index companies, 66 ended the day on a positive note, while 29 closed in the red. Four companies remained unchanged, while one stock remained untraded.
The KSE-100 index found support from several sectors, notably Oil & Gas Exploration Companies, which contributed 230.8 points to the index, followed by gains from Commercial Banks (130.75pts), Inv. Banks / Inv. Cos. / Securities Cos. (55.51pts), Leather & Tanneries (42.13pts), and Pharmaceuticals (37.53pts).
Conversely, certain sectors weighed down the index’s performance, with Cable & Electrical Goods leading the losses by deducting 16.35 points, followed by Cement (5.2pts), Insurance (4.78pts), Property (3.82pts), and Transport (1.02pts).
Among the individual companies, those adding significant points to the index included POL (142.2pts), DAWH (51.68pts), ENGRO (43.04pts), SRVI (42.13pts), and PPL (38.48pts).
On the other hand, companies that dragged the index lower were FFC (25.61pts), PAEL (16.35pts), PIOC (15.52pts), FFBL (10.79pts), and KEL (10.55pts).
ALL-SHARE INDEX SHOWS ROBUST GROWTH, TOTAL MARKET VOLUME SLIGHTLY DOWN
In a buoyant trading session, the All-Share index closed at 47,934.88, marking a notable net gain of 388.34 points. Despite this impressive uptick, total market volume experienced a slight dip, recording 721.60 million shares compared to the previous session’s 741.20 million shares. However, the traded value saw a significant increase, reaching Rs25.65 billion, reflecting a rise of Rs377.22 million.
The trading landscape witnessed 297,017 trades involving 385 companies. Among these, 240 companies ended the day on a positive note, 119 closed in the red, and 26 remained unchanged.
Top Ten by Volume:
- CNERGY: 64,224,241 shares
- WTL: 51,639,862 shares
- HUMNL: 29,028,603 shares
- PAEL: 27,558,689 shares
- FCCL: 21,206,203 shares
- KEL: 20,092,701 shares
- GGL: 17,550,765 shares
- ASL: 16,563,667 shares
- MLCF: 16,268,606 shares
- POWER: 15,463,723 shares
Performance Highlights:
Throughout the fiscal year, the KSE-100 index has demonstrated remarkable growth, gaining 32,346 points or 78.03%. Similarly, the ongoing calendar year has witnessed a cumulative increase of 11,348 points, equivalent to 18.17%.
