PTBP Web Desk

The Pakistan Stock Exchange (PSX) faced another day of selling pressure on Thursday, with the benchmark KSE-100 Index closing significantly below the 114,000 mark, shedding over 650 points. This downturn reflects ongoing concerns among investors regarding both local political developments and economic indicators.

Market Opening and Intra-day Movements The trading session started on a somewhat optimistic note, with the KSE-100 hitting an intra-day high of 114,884.63. However, this early positivity was short-lived as selling pressure mounted, leading the index to plummet to an intra-day low of 113,630.45. By the end of the day, the index settled at 113,836.74, marking a decrease of 658.96 points or 0.58% from its previous close.

Sectoral Performance The decline was widespread, affecting key sectors such as automobile assemblers, commercial banks, fertilizer companies, and oil and gas exploration firms. Major stocks like Pakistan Refinery Limited (PRL), Pakistan State Oil (PSO), Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL), Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), Engro Corporation (ENGRO), MCB Bank Limited (MEBL), and United Bank Limited (UBL) all ended the day in negative territory.

Political and Economic Context The market’s reaction is partly attributed to the ongoing political negotiations between the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Tehreek-e-Insaaf (PTI), which continue to sway investor confidence. According to market analysts, there’s a palpable tension regarding the stability and future direction of the government, which directly impacts investment decisions. Moreover, Intermarket Securities highlighted concerns about the slowing buildup of foreign exchange reserves at the State Bank of Pakistan (SBP), which adds to the economic uncertainty.

Previous Market Trends The day before, the PSX had oscillated between gains and losses before closing in the red, ending a three-day positive streak. The KSE-100 Index then declined by 308.46 points or 0.27%, settling at 114,495.71 points, showing that the bearish trend had already set in.

Global Market Influence On a global scale, Asian markets were more buoyant, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.4%, driven by expectations of U.S. Federal Reserve rate cuts following softer U.S. inflation data. China’s blue-chip stocks and Hong Kong’s Hang Seng Index also showed gains, indicating a contrasting trend to the local market.

Currency and Trading Volume The Pakistani rupee experienced a slight depreciation against the US dollar, closing at 278.86 after losing Re0.09. Trading volume at PSX decreased, with the all-share index recording 469.44 million shares traded compared to 659.43 million the day before, with the total value of shares traded also dropping to Rs24.98 billion from Rs39.64 billion.

Market Leaders and Performance WorldCall Telecom led in trading volume with 103.7 million shares, followed by Cnergyico PK with 37.11 million shares, and Dewan Motors with 19.33 million shares. Out of 464 companies traded, 137 saw gains, while 268 ended in loss, with 59 companies remaining unchanged.