KARACHI: Pakistan Stock Exchange (PSX) remained under severe selling pressure during the outgoing week ended on July 26, 2024 on investor concerns over prevailing political unrest in the country leading uncertainty on the economic front.
The benchmark KSE-100 index plunged by 2,088.38 points or 2.6 percent on week-on-week basis and closed at 78,029.51 points.
Trading activities also remained low as average daily volumes on ready counter declined by 27.3 percent to 336.89 million shares during this week as compared to previous week’s average of 463.55 million shares while average daily traded value on the ready counter declined by 41.6 percent to Rs 15.65 billion during this week against previous week’s Rs 26.81 billion.
BRIndex100 decreased by 225.04 points during this week to close at 8,233.36 points with average daily turnover of 264.068 million shares.
BRIndex30 declined by 923.31 points on week-on-week basis to close at 25,834.64 points with average daily trading volumes of 155.919 million shares.
Total market capitalization declined by Rs 274 billion during this week to stand at Rs 10.388 trillion.
An analyst at JS Global Capital said that the KSE-100 index continued to remain under pressure during the week (down by 2.6 percent WoW) owing to the ongoing political unrest in the country leading to uncertainty on the economic front, resulting in investors taking a cautious approach.
Country also awaits the final nod from IMF’s executive board for the new Extended Fund Facility of $7.0 billion. The Government is actively negotiating with China for debt re-profiling of energy debt along with the plan to convert the consumption of imported coal power plants to Thar coal.
An analyst at Arif Habib Limited said that the market remained negative despite the recent $7.0 billion staff-level agreement between the IMF and Pakistan, commencement of result season and the anticipation of a rate cut in the upcoming monetary policy.
This bearish trend was mainly driven by political noise in the country.
Sector-wise negative contributions came from power generation & distribution (down 153 points), cement (down 111 points), commercial banks (down 107 points),oil & gas exploration companies (down 96 points) and fertilizer (down 83points). However, the sectors that mainly contributed positively were technology & communication (up 31 points), chemical (up 27 points), automobile assembler (up 19 points), real estate investment trust (up 5 points) and textile spinning (up 2 points).
Scrip-wise negative contributors were HUBC (down 120points), DAWH (down 84points), UBL (down 56 points), Engro (down 49 points) and PSO (down 45 points). Meanwhile, scrip-wise positive contributions came from MEBL (up 49points), TRG (up 42 points), EFERT (up 35 points), LCI (up 30points) and FFBL (up 18 points).
Foreigner buying continued during the week, clocking in at $4.6 million during this week compared to a net buy of $9.3million last week. Major buying was witnessed in oil and gas marketing cos. ($1.4 million) and commercial banks ($1.2 million). On the local front, selling was reported by mutual funds companies ($5.0 million) followed by individuals ($1.7 million).
Copyright Business Recorder, 2024
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