PSX closes flat over late profit-taking

KSE-100 index crawls up 20.07 points, settles at 64,637.64

KARACHI:

Pakistan Stock Exchange experienced a topsy-turvy session on Friday and closed almost flat with the addition of 20 points as it failed to protect early gains driven by the International Monetary Fund’s (IMF) nod for the release of a $700 million loan tranche.

In the morning, the market started off on a positive note and with a gradual rise the KSE-100 index reached its intra-day high at 65,356.85 points in early trading.

At that level, investor interest weakened who resorted to profit-booking following central bank’s report showing a $66 million decrease in the country’s foreign currency reserves.

In addition, a 1.36% week-on-week increase in inflation measured by the Sensitive Price Indicator (SPI) also pulled down the index, which touched its intra-day low at 64,491.08 about an hour before close.

“Stocks closed higher following approval of $700 million tranche by the IMF board after completion of first review of Pakistan’s economic reforms programme,” said Arif Habib Corp MD Ahsan Mehanti.

“Despite uncertainty about the outcome of Senate resolution that called for postponing general elections, surging Pakistan’s dollar bonds, rising global crude prices and strong rupee recovery played the role of catalysts in bullish close at the PSX,” he said.

At close, the benchmark KSE-100 index recorded an increase of 20.07 points, or 0.03%, and settled at 64,637.64.

Topline Securities, in its report, noted that the KSE-100 index opened on a positive note as it gained ground and touched the intra-day high at 739 points.

“This positivity can be attributed to the news that the IMF executive board has approved the first review under the SBA (standby arrangement), which will lead to the release of $700 million tranche,” it said.

“However, sceptical investors came to book profit during closing hours as they feared that news reports about upcoming elections may keep the market volatile,” Topline added.

Read Despite fall, PSX stays above 64,000 mark

Arif Habib Limited (AHL), in its review, stated that the index remained flat week-on-week with Friday marking a new weekly high before closing back in the range of 64k-65.3k.

“The ratio of advancers-to-decliners came in at 39:53 with significant contribution to the index coming from Mari Petroleum (+2.88%) and Engro Fertilisers (+1.47%). Hub Power (-0.93%) and TRG Pakistan (-1.79%) were the biggest drags,” it said.

A major factor influencing the index was the IMF’s nod for a $700 million loan tranche, which was expected to further boost market sentiment, allowing for some solid upside next week, AHL noted.

JS Global analyst Muhammad Shuja Qureshi noted that once again the KSE-100 index failed to stay above the 65,000 level and closed with gains of just 20 points at 64,638.

Profit-taking was seen across the board, however, Engro Fertilisers, Engro Corp, Oil and Gas Development Company, Pakistan Petroleum and Pakistan State Oil managed to close higher, the analyst added.

Overall trading volumes increased to 643.3 million shares against Thursday’s tally of 586.5 million. The value of shares traded during the day was Rs20.02 billion.

Shares of 365 companies were traded. Of these, 137 stocks closed higher, 216 dropped and 12 remained unchanged.

K-Electric was the volume leader with trading in 142.5 million shares, gaining Rs0.02 to close at Rs6.03. It was followed by Pakistan International Bulk Terminal with 77.9 million shares, gaining Rs0.42 to close at Rs7.57 and WorldCall Telecom with 27 million shares, losing Rs0.01 to close at Rs1.42.

Foreign investors were net buyers of shares worth Rs134.9 million, according to the NCCPL.

Published in The Express Tribune, January 13^th, 2024.

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