After positive start, KSE-100 ends session on flat note

After initial gains that propelled the benchmark index to near the 81,000 level, the Pakistan Stock Exchange (PSX) ended on a flat note on Thursday with both volume and value of shares traded declining on a day-to-day basis.

The benchmark KSE-100 index had stayed in the positive territory for most part of the trading session. It hit an intra-day high of 80,888.86, an increase of 655 points.

However, the market could not maintain the bullish trend in the second half and at close, the index settled at 80,282.80, an increase of just 49.13 points or 0.06%.

Some buying was witnessed in key sectors including automobile assemblers, commercial banks, OMCs and refineries.

Index-heavy stocks including HCAR, INDU, HBL, MEBL, PSO and SNGP closed in the green.

The market has been on a winning run in anticipation of the International Monetary Fund (IMF) programme, which got a further boost as lender on Wednesday appreciated Pakistan’s tough economic decisions and efforts regarding the hike in gas prices.

According to sources, Pakistan and the IMF held virtual talks on the efforts made in the budget to meet the conditions. The IMF was briefed on the measures taken by Pakistan to increase gas prices and other tough economic decisions in the budget, sources added.

On Wednesday, the PSX continued with its winning run as the benchmark KSE-100 index settled above the 80,000 level for the first time in history after an increase of 680.79 points or 0.86%.

Globally, Japan’s Topix hit a record high on Thursday, led by gains in automakers and banks, as the market expects a robust corporate outlook in the latter half of the year.

The broader Topix index rose to as high as 2,890.52 earlier in the session, exceeding a record intraday high of 2,885.50 marked in December 1989.

The index also crossed a record closing high of 2,884.80 scaled on the same day over 34 years ago.

The weekly jobless claims data and the US private payrolls report prompted hopes that the easing labour market would encourage the Fed to start cutting rates.