The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index ended with a fractional gain on Tuesday, following a roller-coaster ride with several ups and downs amid lack of positive triggers.
The KSE-100 swayed in both directions since the start of the session, touching an intra-day high of 78,644.96 and an intra-day low of 78,250.90 in the first half.
The second half also saw range-bound trading, leading the index to close with a marginal gain.
At close, the benchmark index settled at 78,356.32, up by 73.02 points or 0.09%.
“The equity market closed the day relatively flat, with the benchmark index experiencing volatility throughout the session,” brokerage house Ismail Iqbal Securities said in its post-market report.
The sectors that contributed negatively included banking, pharma, chemical, technology, and textile. Meanwhile, E&P, auto, cement, power, OMCs, and fertiliser sectors were positive contributors.
On Monday, the PSX endured a mixed session as the KSE-100 closed 205 points lower after oscillating in the green and red zones.
In a key development, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday said the government was in “advanced stages” to seek assurances around external financing as authorities eye the finalisation of its $7 billion loan from the International Monetary Fund (IMF).
“On the discussions with the IMF, we are in advanced stages in terms of getting assurances around our external financing,” Aurangzeb said while giving a briefing on Tuesday.
In a separate statement, Prime Minister Shahbaz Sharif also said the government was working on implementing the “requirements and conditions” of the IMF programme.
“We hope that all conditions and requirements of the IMF will be met in time and our case will be approved by the [IMF Executive] Board,” the PM said during the federal cabinet meeting.
Approval from the board can be a positive trigger for the stock market.
Pakistan’s trade deficit shrank marginally to $3.6 billion during the first two months of fiscal year 2024-25 (2MFY25) due to an increase in exports, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.
The country’s trade balance, gap between exports and imports, was recorded at a deficit of $3.58 billion in July to August period of 2024-25 as compared to $3.74 billion in the same period of the previous year.
Meanwhile, Imran Maniar resigned from his position as Chief Executive Officer (CEO) and Managing Director (MD) of Sui Southern Gas Company Limited (SSGC) to “pursue other opportunities”.
This was stated by SSGC in a notice to the PSX on Tuesday.
Globally, bond yields drifted higher on Tuesday, while currencies and Asia’s stock markets steadied as investors waited on a raft of data to determine how deeply the US can cut interest rates.
Ten-year Treasury yields were slightly higher at 3.919% and two-year yields rose a basis point to 3.935% as trade resumed in Asia following a US holiday overnight.
Upbeat spending figures on Friday led markets to trim the chance of a half-point easing from the Federal Reserve.
The US ISM manufacturing survey due later in the day and particularly jobs data due on Friday will be crucial for the Fed’s decision.
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked 0.1% lower. Japan’s Nikkei rose 0.7% and S&P 500 futures were flat.
The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday. At close, the currency settled at 278.70, a loss of Re0.06 against the US dollar.
Volume on the all-share index decreased to 436.67 million from 457.28 million on Monday.
The value of shares declined to Rs12.25 billion from Rs15.87 billion in the previous session.
Kohinoor Spinning was the volume leader with 83.94 million shares, followed by Symmetry Group Ltd with 37.13 million shares, and Agha Steel Industries with 21.57 million shares.
Shares of 443 companies were traded on Tuesday, of which 203 registered an increase, 167 recorded a fall, while 73 remained unchanged.
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