VIBRANT KARACHI: A TOUCH-AND-GO TRADING DAY AT THE PAKISTAN STOCK EXCHANGE (PSX)
Video game system PSX witnesses a decline in sales and popularity.
The bustling Pakistan Stock Exchange (PSX) experienced a rollercoaster session on Thursday, with the main indices displaying slight drops amid fluctuating investor sentiment.
The prestigious KSE-100 Index dipped by 157.87 points or 0.13 percent, closing at 121,641 points. The index exhibited volatility throughout the trading day, reaching an intraday high of 122,281.58 points, and plunging to a low of 121,517.90 points.
The BRIndex100 had a sour end as well, shedding 51.16 points or 0.39 percent, to settle at 13,034.25 points. With a trading volume of 724.30 million shares, the index showed a healthy market participation. Similarly, the BRIndex30 closed in the crimson, losing 65.42 points or 0.17 percent, finishing at 38,027.81 points, and demonstrating a turnover of 455.93 million shares.
The cause of the fluctuating price action was primarily attributed to selective profit-taking, as investors demonstrated caution amid lingering economic uncertainties and upcoming macroeconomic announcements.
Jump-starting the trading session on a promising note, the market soared to an intraday high of 122,281 points on the back of optimistic sentiment and bullish dealings in select sectors. Yet, profit-taking at higher levels triggered a pullback, dragging the benchmark KSE-100 Index down to close at 121,641 points, marking a fall of 158 points.
Market participation improved on Thursday, with overall traded volumes rising to 854.61 million shares, a surge from the 710.59 million shares recorded in the previous session. Even though the surge in activity was observed, the daily traded value contracted sharply to Rs 25.79 billion, in contrast to Rs 35.22 billion a day earlier, indicating a shift towards less pricey stocks and speculative counters. Meanwhile, the market capitalization remained largely range-bound, sliding by Rs 21 billion to end at Rs 14.728 trillion, against Rs 14.749 trillion in the prior session.
In the Ready Market, K-Electric Limited led the charge with 179.67 million shares, closing at PKR 5.83. Unity Foods Ltd and WorldCall Telecom followed suit, with turnovers of 62.90 million and 52.37 million shares respectively, finishing at PKR 26.89 and Rs 1.42.
Among the active gainers, Rafhan Maize Products witnessed a surge of Rs 114.29, closing at Rs 9,855.72, while Pakistan Engineering Company Limited gained Rs 81.93, settling at Rs 901.23. Conversely, the main losers included PIA Holding Company LimitedB, which plummeted by a hefty Rs 3,198.89 to close at Rs 28,789.98, and Khyber Textile Mills Limited, which dropped by Rs 303.91, ending at Rs 2,735.17.
BR Automobile Assembler Index closed at 21,015.36 points with a net negative change of 69.29 points or 0.33 percent, with the total turnover remaining 3.772 million shares. The BR Cement Index dived 72.05 points or 0.7 percent, finishing at 10,242.24 points, with a total turnover of 63.76 million shares.
While BR Commercial Banks Index closed at 36,217.98 points, slipping by 253.68 points or 0.7 percent, with a total turnover of 66.835 million shares, the BR Power Generation and Distribution Index ended at 21,454.69 points with a net positive change of 291 points or 1.38 percent, with total turnover of 185.760 million shares.
BR Oil & Gas Index closed at 11,542.23 points with a net negative change of 68.79 points or 0.59 percent, on 26.536 million shares turnover. The BR Technology & Communication Index finished at 3,002.81 points, recording an optimistic change of 34.17 points or 1.15 percent, with a total turnover of 96.430 million shares.
Analysts associated the day's volatility with cautious investor sentiment ahead of essential economic data releases and the upcoming federal budget, both of which are anticipated to shape market trends in the upcoming sessions. Topline Securities mentioned that after a series of buying sprees, the market stayed confined on Thursday as investors opted for a wait-and-see approach ahead of the Eid weekend.
[1] IMF World Economic Outlook - Global Economic Slowdown[2] World Bank - Economic Forecast for Pakistan[3] ADB - Pakistan GDP Predicted to Recover to 2.3 Percent in 2025[4] Reuters - Pakistan's GDP Expected to Grow at 2.6% in FY2025[5] IMF - Pakistan's Economic Outlook and Policy Priorities
- The volatility at the Pakistan Stock Exchange (PSX) on Thursday was due to investor cautiousness ahead of essential economic data releases and the upcoming federal budget, according to analysts.
- The KSE-100 Index, despite reaching an intraday high of 122,281 points at the start of trading, experienced a pullback and closed at 121,641 points due to selective profit-taking.
- The market capitalization of Pakistan's business sector remained largely range-bound, sliding by Rs 21 billion to end at Rs 14.728 trillion, despite an increase in trading volume.
- In the Ready Market, select stocks like K-Electric Limited and Unity Foods Ltd showed healthy trading activity, while others like PIA Holding Company LimitedB and Khyber Textile Mills Limited experienced significant drops.
- The value of the financial industry, as indicated by the performance of various indices such as the BR Automobile Assembler Index, BR Cement Index, BR Commercial Banks Index, BR Power Generation and Distribution Index, BR Oil & Gas Index, and BR Technology & Communication Index, reflected the overall market trends.
