Despite fall, PSX stays above 64,000 mark
A sign of the Pakistan Stock Exchange is seen on its building in Karachi, Pakistan January 11, 2016. PHOTO: REUTERS
Pakistan Stock Exchange (PSX) maintained its losing streak on Tuesday amid volatile trading as the KSE-100 index swung in a 908-point range owing to pre-poll uncertainty.
Although the trading session commenced on a strong note at the intra-day high of 64,786.35 points, the index gradually declined. The descend was primarily attributed to the poor performance of services exports, which fell 15.85% year-on-year (YoY) in November 2023, coupled with a subdued global crude oil market and persistent geopolitical concerns.
As the day progressed, the bourse fell to the intra-day low at 63,878.21 points, slipping below the significant level of 64,000 around midday.
Though there were not many positive triggers, the KSE-100 index managed to close above the 64,000 mark, wiping off some losses suffered during the session. “Stocks closed lower on pre-poll uncertainty after envoys stressed the need for inclusive elections,” said Arif Habib Corp MD Ahsan Mehanti.
“Dismal data on exports of services that fell 15.85% YoY in November 2023, weak global crude oil prices and ongoing geopolitical tensions played the role of catalysts in bearish close of the market.” At close, the benchmark KSE-100 index recorded a slight decrease of 66.45 points, or 0.1%, and settled at 64,170.58.
Topline Securities, in its report, noted that throughout Tuesday’s trading session, the index displayed volatility, swinging within a range of 908 points. “Negative movements were observed in Systems Limited, Pakistan Services, Meezan Bank, Oil and Gas Development Company and Habib Bank, which collectively caused a loss of 92 points,” it said.
Arif Habib Limited (AHL), in its review, stated “as 64,000 holds, we are still waiting for the market to show its hand.”
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The advancers-to-decliners ratio stood at 35:57 with Engro Fertilisers (+1.56%) and Engro Corporation (+1.34%) contributing the most to index gains while Systems Limited (-0.92%) and Pakistan Services (-3.55%) were the largest drags, AHL said.
JS Global analyst Muhammad Shuja Qureshi said that despite a positive start, the market remained volatile during the day, resulting in lower participation with volumes falling to 449 million shares.
“Going forward, investors are advised to remain cautious and wait for dips to accumulate value stocks,” the analyst added.
Overall trading volumes decreased to 448.99 million shares against Monday’s tally of 484.01 million. The value of shares traded during the day was Rs12.3 billion.
Shares of 352 companies were traded. Of these, 141 stocks closed higher, 187 dropped and 24 remained unchanged.
K-Electric was the volume leader with trading in 113.95 million shares, losing Rs0.15 to close at Rs5.75. It was followed by Hascol Petroleum with 36.1 million shares, gaining Rs0.45 to close at Rs8 and Pakistan International Airlines Corp with 19.8 million shares, gaining Rs0.63 to close at Rs8.99. Foreign investors were net buyers of shares worth Rs248.2 million, according to NCCPL.
Published in The Express Tribune, January 10th, 2024.
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