KARACHI: Pakistan Stock Exchange (PSX) remained largely range-bound during the week ended Sep 6, 2024 with an increase of 409.51 points in the benchmark KSE-100 index.
Week-on-week basis, the KSE-100 index closed at 78,897.73 points at the end of last week compared to 78,488.22 points a week earlier. Share trading activities improved as average daily volumes on ready counter increased by 11.8 percent to 675.46 million shares during this week as compared to previous week’s average of 604.10 million shares.
However, average daily traded value on the ready counter decreased by 22.4 percent to Rs 14.57 billion during this week as against previous week’s Rs 18.78 billion.
BRIndex100 increased by 11.54 pints during this week to close at 8,340.03 points up from 8,328.49 points with average daily turnover of 506.482 million shares.
BRIndex30 closed at 26,956.38 points, up 328.92 points with average daily trading volumes of 299 million shares.
Analysts at JS Global Capital said that the KSE-100 index remained largely range-bound this week, posting a gain of 0.5 percent. The week began with the CPI reading coming in at 9.6 percent for Aug-2024, marking the first single-digit inflation rate in 3 years and keeping real interest rates at approximately 10ppt.
A notable development this week was the significant drop in International oil prices, which have fallen 20% since their peak in early 2024. Moreover, the government raised Rs835 billion from T-Bills, surpassing the auction target without lowering cut-off yields.
On the economic front, trade deficit narrowed to $1.68 billion, lowest in 11 months. Cement dispatches fell by 26 percent YoY for August, with cumulative 2MFY25 dispatches dropping 18 percent YoY due to elevated prices.
According to AHL Research Analysts, the market commenced on a negative note given the investors resorted to profit taking. The momentum shifted towards green zone post announcement of single digit inflation, renewing expectations of a cut in the policy rate in the upcoming MPC meeting next week.
Sector-wise positive contributions came from, E&Ps (248pts), Cement (191pts), Fertilizer (68pts), Power Generation (61pts) and Auto Assembler (56pts). Meanwhile, the sectors that mainly contributed negatively were Commercial Banks (-89pts), Chemical (-40pts), and Technology (-39pts).
Scrip-wise positive contributors were MARI (172pts), UBL (117pts), KOHC (85pts), OGDC (82pts), and EFERT (63pts). Meanwhile, scrip-wise negative contributions came from MEBL (170pts), POL (54pts), NBP (51pts), HBL (49pts), and COLG (35pts).
Foreigner selling was observed during this week, clocking in at $ 6.7 million compared to a net buy of $3.7 million last week.
According to Spectrum Securities, during the last week activity remained focused on third tier stocks that kept ready-board and investment stocks in shadow. Market showed consolidation behaviour during this week with a clear bullish bias. Index thrice tried to break above 79,000-79,200 key resistance but failed.
As per key statistics on stock markets, WTL, KOSM and PACE topped the volume charts with 97 million, 44 million, and 35 million shares, respectively.
Copyright Business Recorder, 2024