The Pakistan Stock Exchange (PSX) began the week cautiously but gained momentum, closing with a 1% rise in the KSE-100 index. Explore the day-by-day performance, key sectors, and factors driving the market in our detailed review.
The Pakistan Stock Exchange (PSX) witnessed a week of mixed sentiments, starting slow but gaining momentum as the days progressed. By the end of the week, the benchmark KSE-100 index closed at 115,536 points, marking a 1% increase compared to the previous week. Let’s break down the week day by day to understand the factors that shaped the market’s performance.
Monday: A Cautious Start
The week began on a cautious note as the KSE-100 index slipped by 42.36 points (0.04%) to close at 114,356.34. Investors remained hesitant due to uncertainty surrounding the State Bank of Pakistan’s (SBP) upcoming monetary policy decision and ongoing review talks with the International Monetary Fund (IMF). The lack of significant movement reflected the market’s wait-and-see approach, with traders avoiding major bets ahead of key announcements.
Tuesday: Continued Decline
The downward trend continued on Tuesday as the KSE-100 index fell by 179 points (0.16%) to close at 114,177.66. The decline was attributed to low trading activity and investor caution following the SBP’s decision to maintain the policy rate at 22%. Many had anticipated a 0.5% cut, and the unchanged rate dampened market sentiment.
Wednesday: Another Slow Day
Wednesday saw another sluggish trading session, with the KSE-100 index dropping by 93.12 points (0.08%) to close at 114,084.54. Investors found little reason to push the market higher, as concerns over the IMF review and economic stability persisted. The lack of positive triggers kept the market in a tight range.
Thursday: A Strong Recovery
The tide turned on Thursday as the PSX made a strong recovery, with the KSE-100 index surging by 1,009.70 points (0.89%) to close at 115,094.24. This impressive rebound was driven by renewed investor confidence, fueled by hopes of a favorable outcome from the IMF review and an improved outlook for the banking sector by Moody’s. The energy sector also saw significant activity, with investors optimistic about progress in resolving the circular debt issue.
Friday: Ending the Week on a High
The week ended on a positive note as the KSE-100 index climbed by 441.93 points (0.38%) to close at 115,536.17. Investor sentiment remained buoyant, supported by positive expectations for the IMF review and a promising earnings outlook. Key sectors like Exploration & Production, Oil Marketing Companies, and banks contributed significantly to the gains.
Key Highlights of the Week
- Sector Performance: The biggest boosts came from Exploration & Production (234 points), Oil Marketing Companies (194 points), banks (179 points), cement (118 points), and fertiliser (110 points). On the flip side, sectors like engineering, glass & ceramics, and automobile assemblers dragged the market down.
- Top Gainers: Mari Petroleum (MARI) led the gains with 303 points, followed by PSO (174 points), HBL (65 points), EFERT (53 points), and DGKC (51 points).
- Top Losers: MTL lost 52 points, SRVI dropped 37 points, and PPL fell by 34 points.
- Foreign Investors: Foreigners continued selling, offloading 2.61millionworthofshares,thoughthiswaslowerthanthepreviousweek’s2.61millionworthofshares,thoughthiswaslowerthanthepreviousweek’s5.3 million.
- Local Investors: Banks/DFIs were the biggest buyers, investing 110.9million,followedbyOtherOrganisationswith110.9million,followedbyOtherOrganisationswith1.7 million.
- Trading Activity: The average daily traded volume increased by 16% week-on-week to 337 million shares, while the average traded value rose by 21% to Rs22 billion.
What Drove the Market?
The week’s performance was shaped by a mix of domestic and international factors. The SBP’s decision to maintain the policy rate initially weighed on investor sentiment, but optimism around the IMF review and progress on the circular debt issue provided a much-needed boost. Additionally, Moody’s improved outlook for the banking sector added to the positive momentum.
Looking Ahead
As the PSX wraps up the week on a positive note, investors are hopeful that the upcoming IMF review will bring further clarity and stability to the market. With key sectors showing resilience and trading activity picking up, the market appears poised for potential growth in the coming weeks.
This week’s performance at the PSX highlights the dynamic nature of the stock market, where cautious starts can lead to strong finishes, driven by investor confidence and positive economic developments. Stay tuned for more updates as the market continues to evolve!