The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 closed flat on Friday, as selling in the final hours erased the gains the index had made earlier during the day.
The KSE-100 started the session positive, with investors rejoiced over Moody’s Ratings’ improvement in Pakistan’s credit rating. It hit an intra-day high of 147,534.41.
However, selling in the latter hours erased the intra-day gains and pushed the index into the negative territory.
At close, the benchmark index settled at 146,491.63, marginally lower by 37.67 points or 0.03%.
Top positive contribution to the index came from EFERT, LUCK, ENGROH, MEBL & AIRLINK, as they cumulatively contributed 512 points. On the other hand OGDC, UBL, PPL, HUBC and MARI lost value to weigh down on the index by 499 points, brokerage house Topline Securities said in its post-market report.
Traded value wise AIRLINK, OGDC, PSO, LUCK, and NBP dominated the trading activity, it added.
“Investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark. The session’s tone reflected a cautious approach ahead of the weekend, with traders balancing positions in anticipation of fresh cues for the market’s next directional move,” Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said in a statement.
On Wednesday, PSX experienced a session of mild profit-taking, as bears took control amid concerns over a surge in the trade deficit and unmet IMF conditions for provincial tax collection. The KSE-100 Index closed at 146,529.31 points, a decrease of 476.02 points or 0.32%.
The stock market was closed on Thursday, i.e. 14th August, on account of a public holiday.
Continuing its winning streak in a straight 8th week, the KSE-100 index gained 0.76% by adding 1,108 points. After opening at 145,650 the index touched a high of 147,977 and a low of 145,259 eventually closing the week at 146,491 level.
An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan at the end of September, with the country expecting to receive the third tranche of $1 billion upon completion of the next review.
Meanwhile, the State Bank of Pakistan (SBP), in its first-ever biannual Monetary Policy Report published on Wednesday, said that the return of stability in the domestic economy has promoted the country “in a better position today to manage external shocks and domestic risks than it was two years ago”.
The central bank said foreign investment inflows were projected to improve in the wake of the recent upgrade in the country’s sovereign credit rating and the resultant decline in CDS (credit default swap) spreads.
“All these factors, combined with fresh liquidity moving from the debt market into equities, have contributed to the recent momentum,” Waqas Ghani, Head of Research, told media.
Globally, Asian stocks made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve’s September meeting, while US bonds and equity futures stabilised.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics, which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists’ expectations.
The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group’s FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago.
Meanwhile, the Pakistani rupee continued to march upwards against the US dollar, appreciating 0.06% in the inter-bank market on Friday. At close, the currency settled at 282.06, a gain of Re0.16.
Volume on the all-share index decreased to 473.60 million from 647.09 million recorded in the previous close.
The value of shares declined to Rs32.88 billion from Rs40.89 billion in the previous session.
Aisha Steel Mill was the volume leader with 30.03 million shares, followed by Media Times Ltd with 21.73 million shares, and Air Link Communication Limited with 18.88 million shares.
Shares of 479 companies were traded on Friday, of which 226 registered an increase, 219 recorded a fall, while 34 remained unchanged.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 closed flat on Friday, as selling in the final hours erased the gains the index had made earlier during the day.
The KSE-100 started the session positive, with investors rejoiced over Moody’s Ratings’ improvement in Pakistan’s credit rating. It hit an intra-day high of 147,534.41.
However, selling in the latter hours erased the intra-day gains and pushed the index into the negative territory.
At close, the benchmark index settled at 146,491.63, marginally lower by 37.67 points or 0.03%.
Top positive contribution to the index came from EFERT, LUCK, ENGROH, MEBL & AIRLINK, as they cumulatively contributed 512 points. On the other hand OGDC, UBL, PPL, HUBC and MARI lost value to weigh down on the index by 499 points, brokerage house Topline Securities said in its post-market report.
Traded value wise AIRLINK, OGDC, PSO, LUCK, and NBP dominated the trading activity, it added.
“Investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark. The session’s tone reflected a cautious approach ahead of the weekend, with traders balancing positions in anticipation of fresh cues for the market’s next directional move,” Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said in a statement.
On Wednesday, PSX experienced a session of mild profit-taking, as bears took control amid concerns over a surge in the trade deficit and unmet IMF conditions for provincial tax collection. The KSE-100 Index closed at 146,529.31 points, a decrease of 476.02 points or 0.32%.
The stock market was closed on Thursday, i.e. 14th August, on account of a public holiday.
Continuing its winning streak in a straight 8th week, the KSE-100 index gained 0.76% by adding 1,108 points. After opening at 145,650 the index touched a high of 147,977 and a low of 145,259 eventually closing the week at 146,491 level.
An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan at the end of September, with the country expecting to receive the third tranche of $1 billion upon completion of the next review.
Meanwhile, the State Bank of Pakistan (SBP), in its first-ever biannual Monetary Policy Report published on Wednesday, said that the return of stability in the domestic economy has promoted the country “in a better position today to manage external shocks and domestic risks than it was two years ago”.
The central bank said foreign investment inflows were projected to improve in the wake of the recent upgrade in the country’s sovereign credit rating and the resultant decline in CDS (credit default swap) spreads.
“All these factors, combined with fresh liquidity moving from the debt market into equities, have contributed to the recent momentum,” Waqas Ghani, Head of Research, told media.
Globally, Asian stocks made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve’s September meeting, while US bonds and equity futures stabilised.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics, which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists’ expectations.
The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group’s FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago.
Meanwhile, the Pakistani rupee continued to march upwards against the US dollar, appreciating 0.06% in the inter-bank market on Friday. At close, the currency settled at 282.06, a gain of Re0.16.
Volume on the all-share index decreased to 473.60 million from 647.09 million recorded in the previous close.
The value of shares declined to Rs32.88 billion from Rs40.89 billion in the previous session.
Aisha Steel Mill was the volume leader with 30.03 million shares, followed by Media Times Ltd with 21.73 million shares, and Air Link Communication Limited with 18.88 million shares.
Shares of 479 companies were traded on Friday, of which 226 registered an increase, 219 recorded a fall, while 34 remained unchanged.
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