Stocks inch up amid high volatility

KSE-100 index adds just 5.30 points, settles at 85,669.28

KARACHI:

Pakistan Stock Exchange (PSX) on Wednesday closed almost flat, inching up just 5.30 points, following a volatile session, despite gains in the banking sector and positive economic developments.

The day began on an optimistic note, thanks to positive triggers, including the State Bank of Pakistan's (SBP) revision in the small and medium enterprise (SME) exposure limit and high remittances of $2.8 billion for September. Those factors propelled the KSE-100 index to the intra-day high of 86,451.42 points by afternoon.

However, the index dipped from its peak due to profit-taking, making it difficult to stay above 86,000. Consequently, the KSE-100 hit its intra-day low of 85,444.30 points towards the close of trading.

Despite mid-session pressure from falling global oil prices and foreign fund outflows, easing political tensions and speculation surrounding corporate earnings helped stabilise the market. The bourse closed below the 86,000 mark with minuscule gains. "Stocks closed at a new all-time high, led by banking shares, after the SBP revised per party exposure limit for SMEs and reports of $2.8 billion in remittances for September 2024," said Ahsan Mehanti, Managing Director of Arif Habib Corp.

"Mid-session pressure emerged due to falling global crude oil prices and foreign outflows. However, easing political noise and speculation in the earnings season played the role of catalysts in positive close at the PSX."

At the close of trading, the KSE-100 index registered thin gains of 5.30 points, or 0.01%, and settled at 85,669.28.

Topline Securities, in its commentary, noted that the trading session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking and the index's inability to sustain levels above 86,000. "The market was primarily supported by local institutions' buying activity," it said. Key contributors to the index were MCB Bank, Lucky Core Industries, Bank AL Habib, Hub Power and Habib Bank, which collectively added 292 points.

Negative contribution came from Fauji Fertiliser, Engro Fertilisers and Pakistan Oilfields, which wiped off 215 points from the index, Topline added. Arif Habib Limited (AHL), in its report, stated that the 86,000 level was tested before declining to close the day at 85,670.

Some 46 shares rose while 53 fell with MCB Bank (+2.97%), Bank AL Habib (+1.84%) and Hub Power (+1.34%) making the biggest contribution to the index gains, it said, adding that notable moves were seen in Pakistan National Shipping Corporation (+10%), Pakistan Telecommunication Company Limited (+9.54%) and PIA Holding Company (+8.38%). JS Global analyst Mohammed Waqar Iqbal observed that the KSE-100 index remained nearly flat, closing at 85,669 points, with the increase in trading volumes to 596 million shares compared to 507 million shares in the previous session.

"Looking ahead, we recommend capitalising on any gains by booking profits as market conditions suggest a cautious approach," the analyst added.

Overall trading volumes increased to 596.05 million shares compared with Tuesday's tally of 506.6 million. The value of shares traded during the day was Rs31.3 billion.

Shares of 448 companies were traded. Of these, 208 stocks closed higher, 172 declined and 68 remained unchanged.

K-Electric was the volume leader with trading in 55.8 million shares, gaining Rs0.21 to close at Rs3.98. It was followed by Hub Power with 39.7 million shares, gaining Rs1.5 to close at Rs113.42 and PTCL with 32.2 million shares, gaining Rs1.15 to close at Rs13.20.

During the day, foreign investors sold shares worth Rs3.12 billion, according to the NCCPL.