The KSE-100 Index closed nearly flat on Friday after the index swayed in both directions amid concerns related to early termination of contracts with the independent power producers (IPPs).
The KSE-100 started the session positive, hitting an intra-day high of 85,750.19, followed by selling pressure that pushed the index to an intra-day low of 84,774.46.
However, some late-session buying helped the index to close in the green.
At close, the benchmark index settled at 85,483.40, marginally up by 30.18 points or 0.04%.
On Thursday, the KSE-100 witnessed mixed trading for most part of the day and closed marginally lower on late-session selling.
“Negotiation with IPPs where 5 IPPs have agreed for early termination of Power Purchase Agreements (PPA) has changed the market sentiment,” brokerage house Topline Securities said in its post-market report.
Major positive contribution to the index came from PSO, FFC, EFERT, PIOC and UBL, as they cumulatively contributed 276 points to the index. On the flip side, HUBC, LUCK, HBL, TRG and SRVI lost value to weigh down on the index by 327 points, it added.
Pakistan’s capacity to repay the International Monetary Fund (IMF) remains subject to significant risks, the Washington-based lender said in its staff report, adding that the country remains critically dependent on policy implementation and timely external financing.
The lender said the Fund’s exposure would reach SDR 6,816 million by September 2024 (336% of quota) with purchases linked to the request.
Pakistan’s listed companies, including Citi Pharma Limited and Pakistan Cables, entered into agreements with Saudi firms as the two countries strive to boost economic ties.
Citi Pharma Limited, a Pakistani pharmaceutical, signed a joint venture agreement with All Care Group of Investment, a Saudi investment company, to establish an advanced API (Active Pharmaceutical Ingredient) and Formulation Facility in Saudi Arabia.
Globally, European stocks dipped on Friday as nervous investors awaited updates on China’s stimulus plans, while French markets edged down after the government unveiled its 2025 budget aimed at tackling a spiralling fiscal deficit.
The continent-wide STOXX 600 index was down 0.1%, capping a volatile week that saw Shanghai markets drop on uncertainty around policy support, oil prices spike on Middle East tensions and US data raise doubts about sustained cooling of inflation.
Britain’s FTSE 100 dipped 0.2%, while Germany’s DAX and Spain’s IBEX were down 0.1% each.
China stocks opened down on Friday, as investors cautiously await further policy announcements from a finance ministry press conference scheduled on Saturday.
The Hong Kong market was closed for a holiday.
China’s blue-chip CSI300 Index dropped 0.7% at the market open, while the Shanghai Composite Index edged down 0.4%.
Meanwhile, the Pakistani rupee ended marginally stronger against the US dollar, appreciating 0.05% in the inter-bank market on Friday. At close, the currency settled at 277.64, a gain of Re0.15 against the greenback.
Volume on the all-share index increased to 560.74 million from 503.75 million on Thursday.
However, the value of shares declined to Rs26.12 billion from Rs27.91 billion in the previous session.
Hub Power Co.XD was the volume leader with 58.16 million shares, followed by PTCL with 51.35 million shares, and WorldCall Telecom with 45.7 million shares.
Shares of 435 companies were traded on Friday, of which 130 registered an increase, 251 recorded a fall, while 54 remained unchanged.
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