The Pakistan Stock Exchange (PSX) experienced a slight downturn on Friday, with the KSE-100 Index falling by 327.60 points, or 0.28%, to close at 118,442.17.
The index reached a high of 119,405.91 and a low of 118,334.40 during the trading session.
Trading volume stood at 172.2 million shares, with a total value of Rs 14.91 billion. Despite the decline, the market remains relatively active with key sectors continuing to show resilience.
The market closed lower than the previous day’s closing of 118,769.77 points, which reflects some caution among investors amid global uncertainties.
The negative close effectively ended the six-day rally at the stock exchange.
During the day, the KSE-100 Index surged by nearly 600 points in the opening hours of trading. The index had reached 119,361.22, marking a gain of 591.45 points, or 0.5%.
Positive sentiment was driven by buying activity across key sectors, including commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation. Major stocks like SSGC, WAFI, MARI, OGDC, PPL, HBL, NBP, and UBL saw upward movement.
The rally in the stock market comes amid optimism surrounding an imminent staff-level agreement (SLA) with the International Monetary Fund (IMF), which is seen as a key step in stabilising Pakistan’s economy.
State Bank of Pakistan (SBP) Governor Jameel Ahmed expressed hope that the SLA would be signed soon, although he did not provide a specific timeline.
The market is also closely monitoring efforts by the government to resolve the energy sector’s circular debt, which, if tackled, would improve cash flows for companies in this sector.
On Thursday, Pakistan Stock Exchange (PSX) continued its upward momentum on Thursday, with the KSE-100 index surging past the 119,000 mark during intra-day trading, reaching a record high.
The index gained nearly 800 points, closing at 118,769.77, marking its sixth consecutive day of gains.
The surge was driven by optimism regarding Pakistan’s economic policies, including the anticipated second loan tranche from the International Monetary Fund (IMF), electricity price reductions, tax relaxations, and the potential resolution of circular debt.
Prime Minister Shehbaz Sharif welcomed the market's record performance, attributing it to growing investor confidence in the government's economic agenda.
Investors were also buoyed by expectations of the IMF's staff-level agreement and efforts to settle the circular debt, which could improve the cash flow of companies in emerging sectors.
The market was particularly active due to strong buying from local mutual funds, which contributed to a rise in key sectors such as oil, gas, and technology. Mari Petroleum saw significant trading value due to investor speculation ahead of its board meeting.
Despite the positive momentum, foreign investors sold shares worth Rs720.8 million. The market's overall trading volume rose to 667.9 million shares, with sectors like technology, oil & gas, fertilisers, and refineries leading the gains. Analysts advised caution and recommended booking profits at higher levels while focusing on sectors with strong prospects.
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