Pakistan Stock Exchange (PSX) on Wednesday rose modestly in a volatile trading session marred by a lack of encouraging triggers. After swinging back and forth, the KSE-100 index closed with gains of nearly 140 points.
Investor sentiment revived initially but soon volatility gripped the market. However, it picked up momentum with a midday rally owing to substantial stock buying in auto and banking sectors.
Resultantly, the KSE-100 index touched its intra-day high at 62,600.12. But the market’s strength proved short-lived as investors grabbed the opportunity to book profit, pushing the KSE-100 to the intra-day low at 61,896.01. The bourse closed near the 62,000 mark.
“Stocks showed recovery led by selected shares amid higher global crude oil prices, rupee gains and speculation in the earnings season,” said Arif Habib Corp MD Ahsan Mehanti.
“The government’s resolve to settle the power sector circular debt and the status quo in monetary policy despite a high inflation played the role of catalysts in positive close at the PSX.”
At close, the benchmark KSE-100 index recorded an increase of 137.44 points, or 0.22%, and settled at 61,979.18.
Arif Habib Limited (AHL), in its commentary, noted that there was “some upside relief following four consecutive days of lower close”.
Gains, however, were capped below 63k with the intra-day high at 62.6k, it said. The advancers-to-decliners ratio stood at 36:53 with Engro (+1.36%), Bank Alfalah (+3.1%) and UBL (+1.1%) contributing the most to the market’s advance.
Colgate-Palmolive (-2.79%), Mari Petroleum (-1.41%), and Service Industries (-3.13%) were the biggest downside contributors.
Read Political, security fears drive PSX down
“Price action is expected to have a bearish bias heading into election days with the next draw on liquidity at 59,000 against resistance at 64,000,” AHL added.
JS Global analyst Muhammad Shuja Qureshi said the last day of the month saw the KSE-100 gain 137 points. However, investor sentiment remained weak as turnover dropped. Auto and banking sectors managed to post gains for the day.
Soneri Bank announced a final cash dividend of Rs3 per share and closed limit-up while Sazgar Engineering Works reported 1HFY24 earnings per share of Rs23.40 and rose 6.8%, he added.
Overall trading volumes decreased to 276.5 million shares against Tuesday’s tally of 436.1 million. The value of shares traded during the day was Rs9.3 billion.
Shares of 349 companies were traded. Of these, 165 stocks closed higher, 151 dropped and 33 remained unchanged.
K-Electric was the volume leader with trading in 36.3 million shares, losing Rs0.11 to close at Rs4.54. It was followed by The Bank of Punjab with 20.9 million shares, gaining Rs0.4 to close at Rs6.20 and Hascol Petroleum with 14.2 million shares, remaining unchanged at Rs7.91.
Foreign investors were net sellers of shares worth Rs585.4 million, according to the NCCPL.
Published in The Express Tribune, February 1st, 2024.
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