Pakistan Stock Exchange (PSX) on Thursday was unable to extend the previous day's robust rally as it experienced quiet trading, when the benchmark KSE-100 index closed almost flat.
Activity in the pre-Eid session remained lacklustre, reflecting a cautious investor stance. It was driven by a surge in treasury yields to 12.38% and an unimpressive economic growth for October-December 2024, which stood less than the target.
However, positive developments such as the International Monetary Fund's (IMF) approval of industrial tariff reduction and institutional interest provided some support as the March quarter approached its end.
Arif Habib Corp MD Ahsan Mehanti wrote that stocks closed flat amid a surge in government's treasury bond yields up to 12.38% and subdued economic growth of 1.7% for the October-December 2024 quarter, falling short of the 3.6% target for 2024-25.
Reports of IMF's approval of industrial tariff reduction and institutional support at quarter-end were triggers for the slightly bullish close at the PSX, he added.
At the end of trading, the benchmark KSE-100 index recorded a thin gain of 34.43 points, or 0.03%, and closed at 117,806.75.
KTrade Securities MD and Head of Brokerage Naveed Vakil told The Express Tribune that the market was relatively flat in the last session ahead of prolonged holidays, though investor sentiment remained upbeat following a successful IMF review.
"Intermittent profit-taking and upcoming holidays led to thin volumes focused on futures rollover. When investors return next week, I expect the market to resume with positive momentum arising from favourable macro and sector-specific news," he said.
Topline Securities, in its review, said that lacklustre activity was observed on the last trading session before a long holiday session. The index traded between the intra-day high of +375 points and intra-day low of -221 points, ultimately closing at 117,807, up 0.03%.
Major positive contributors were United Bank, Hub Power, MCB Bank, Meezan Bank and Lucky Cement as they contributed 55 points. On the flip side, Systems Limited, Fauji Fertiliser, Pakistan Petroleum, Mari Petroleum and National Bank dragged the index down by 29 points.
Arif Habib Limited (AHL) stated that the last session before Eid break saw marginal gains for the KSE-100, which traded up to 118k.
Some 43 shares rose while 53 declined, with United Bank (+2.72%), Hub Power (+1.64%) and MCB Bank (+1.51%) contributing the most to the index gains. On the other hand, Fauji Fertiliser (-1.16%), Systems Limited (-2.58%) and Pakistan Petroleum (-0.94%) were the biggest drags, it said.
Additionally, Pakistan is planning to lower electricity costs as part of a broader strategy to provide relief to manufacturers and boost exports. The country also plans to issue Panda bond worth $200-250 million, which is expected in the fourth quarter of 2025.
March has ended with the highest-ever monthly close and Pakistan is now entering a bullish seasonal window in April, AHL remarked.
JS Global analyst Muhammad Hasan Ather stated that range-bound activity with thin volumes was observed on the last trading day ahead of long Eid holidays as investors preferred to stay on sidelines.
The benchmark index moved within a narrow range of 118,147 (+375 points) and 117,551 (-221 points). It closed at 117,806 (+34 points). Moving forward, Ather advised investors to adopt a buy-on-dips strategy, focusing on oil & gas, cement and technology sectors.
Overall trading volumes decreased to 330 million shares compared with Wednesday's tally of 356.7 million. Shares of 447 companies were traded. Of these, 169 stocks closed higher, 216 fell and 62 remained unchanged. The value of shares traded during the day was Rs19.8 billion.
Cnergyico PK was the volume leader with trading in 45.5 million shares, gaining Rs0.26 to close at Rs8.26. It was followed by Arif Habib Corp with 20.6 million shares, rising Rs0.61 to close at Rs11.58 and WorldCall Telecom with 16.2 million shares, losing Rs0.02 to close at Rs1.32. Foreign investors sold shares worth Rs300.5 million, the NCCPL reported.
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