As the year came to an end, Pakistan’s stock market closed slightly under pressure on Tuesday, driven by institutional profit-taking in overbought stocks.
At the close of trading, the KSE-100 index recorded a loss of 132 points and settled at 115,127. Analysts attributed the thin decline to a combination of factors including a global equity slump, subdued economic growth of 0.92% for July-September 2024, security challenges in Karachi, and foreign fund outflows.
However, despite the year-end correction, the PSX witnessed a remarkable growth throughout 2024 as it surged 84%. Additionally, it registered a 178% gain over the past 18 months, marking its strongest performance in history.
Ahsan Mehanti of Arif Habib Corp commented that stocks closed under pressure at the close of the year due to institutional profit-taking in overbought shares.
He added that a slump in global equities, subdued economic growth of 0.92% for the July-September quarter, security concerns in the city, and foreign fund outflows played the role of catalysts in bearish activity at the PSX.
At the end of trading, the benchmark KSE-100 index recorded a decline of 132.09 points, or 0.11%, and settled at 115,126.90.
In its year-end review, Topline Securities commented that the PSX experienced a remarkable comeback in 2024, following years of lacklustre performance. Stocks surged 84%, making it the second best-performing market globally.
It was the highest return in 22 years. Previously, the index saw a high return of 112% in 2002, Topline said.
It added that over the last 18 months, the PSX surged 178%, becoming the top-performing market in the world, according to Bloomberg data. “This represents the strongest performance in Pakistan’s 77-year history.”
Arif Habib Limited (AHL), in its report, noted that year-end selling kept the KSE-100 index below recent highs on Tuesday.
Some 49 shares rose, while 50 fell, with Pakistan Petroleum (+2.3%), UBL (+1.03%) and HBL (+1.7%) contributing the most to index gains. On the other hand, Fauji Fertiliser Company (-1.51%), MCB Bank (-2.1%) and Bank Alfalah (-2.1%) were the biggest drags, it said.
According to media reports, the government has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia for $540 million.
Saudi Arabia is expected to make the payment in two phases – $330 million in phase-I and $210 million in phase-II.
The federal government’s stake is held through Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited, with each holding an 8.33% stake.
According to AHL, in the event of the stake sale, OGDC and PPL are expected to book investment gains of Rs2.56 per share and Rs4.12 per share, respectively.
The KSE-100 index closed the year with a gain of 88% in US dollar terms, ranking second globally, AHL added.
Overall trading volumes increased to 1.24 billion shares compared with Monday’s tally of 1.06 billion.
Shares of 465 companies were traded. Of these, 235 stocks closed higher, 188 fell and 42 remained unchanged.
Cnergyico PK was the volume leader with trading in 213.4 million shares, gaining Rs0.41 to close at Rs7.85.
It was followed by Pace Pakistan with 66.2 million shares, gaining Rs0.76 to close at Rs8.09 and WorldCall Telecom with 65.8 million shares, losing Rs0.05 to close at Rs1.78.
During the day, foreign investors bought shares worth Rs585.9 million, the National Clearing Company of Pakistan reported.
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