PSX ends fiscal year flat amid profit-taking

KSE-100 index finished down by 83.29 points, settles at 78,444.96

KARACHI:

The Pakistan Stock Exchange (PSX) closed nearly flat on the last trading day of the financial year 2023-24, halting its bull run. The KSE-100 index finished down by 83.29 points, or 0.11%, settling at 78,444.96.

The day began positively, with investors buying significantly in the first half, pushing the index to an intra-day high of 78,784.23. However, profit-taking in the latter hours erased the gains, causing the index to slip into negative territory.

Notable events included a 0.73% reduction in weekly inflation and the National Assembly’s approval of the 2024-25 budget with a majority vote. Despite this, strong sectors such as commercial banks, power generation, and oil and gas exploration companies weighed down the index, leading to an intra-day low of 78,312.36 points.

“Stocks closed lower due to fiscal year-end pressures and futures rollover, driven by concerns over anticipated higher CPI inflation in June 2024 and significant profit repatriations of $918 million, which led to substantial foreign outflows in May 2024,” said Ahsan Mehanti, MD of Arif Habib Corp. “Over-leveraging and concerns about tough tax measures in the approved federal budget FY25 also played a role in the bearish close at the PSX.”

Topline Securities noted that the session was range-bound, with the index trading between an intraday high of 266 points and an intraday low of 216 points, eventually closing at 78,445, down by 0.11%. Positive contributions to the index came from Faysal Bank Limited, Meezan Bank Limited, Pakistan Services Limited, Nestle Pakistan, and Pakistan Telecommunication Company, cumulatively adding 155 points. Conversely, MCB Bank, United Bank, Oil and Gas Development Company, Hub Power, and Fauji Fertiliser Company dragged the index down by 310 points.

Arif Habib Limited (AHL) reported a week-on-week decline of 0.53% in the KSE-100 index, which remained consolidated above 78,000 points. Trading for FY24 concluded with Pakistan returning 94% in USD terms, marking a significant turnaround from the brink of default to leading global performance charts.

On Friday, 45 shares rose while 48 fell. FABL (+9.0%), MEBL (+1.09%), and PSEL (+4.41%) were the largest gainers, while MCB (-4.19%), UBL (-1.52%), and HUBC (-0.82%) were the biggest index drags.

“For the coming week, support is expected around 77-78k. Holding above this level would suggest potential moves towards 80k,” AHL predicted.

JS Global analyst Mohammed Waqar Iqbal wrote that range-bound activity was observed as investors preferred to stay on the sidelines on the last trading day of the fiscal year. The KSE-100 index moved in a narrow band of 472 points, touching an intraday high and low of 78,784 and 78,312 points, respectively.

Looking ahead, Iqbal predicted a rebound following the approval of the Federal Budget from the parliament. Corporate results and news regarding the International Monetary Fund (IMF) programme will also influence the market’s direction.

Overall trading volumes increased to 347.6 million shares from Thursday’s 283.5 million, with the value of shares traded at Rs11.8 billion. Shares of 435 companies were traded, with 189 stocks closing higher, 170 falling, and 76 remaining unchanged.

Pakistan Telecomm-unication Company led in volume with 70.9 million shares traded, gaining Rs1 to close at Rs12.01. It was followed by K-Electric with 18.7 million shares, losing Rs0.04 to close at Rs4.63, and WorldCall Telecom with 13.2 million shares, gaining Rs0.01 to close at Rs1.26. Foreign investors were net buyers of shares worth Rs479.5 billion, according to the NCCPL.