Trading at the Pakistan Stock Exchange (PSX) took a downturn on Friday, as the benchmark KSE-100 Index faced a dip of 334 points, closing at 57,063.16, down by 0.58%.
The day commenced on a positive note, with the KSE-100 reaching an intra-day high of 57,750.93. However, the mood quickly shifted as a strong selling spree erased the earlier gains, resulting in a bearish session.
Profit-Taking and Market Analysis
Ismail Iqbal Securities, in its post-market report, highlighted that the market experienced profit-taking activity following six consecutive positive sessions. This indicates a correction after the bullish trend witnessed on Thursday when the KSE-100 Index crossed the historic 57,000 level. The optimism stemmed from the agreement between Pakistan and the International Monetary Fund (IMF) authorities on the first review for a 9-month Stand-By Arrangement (SBA).
Sectors in Decline
Power generation and distribution, fertiliser, and cement sectors bore the brunt of the bearish trend in the day’s session. These segments were identified as the major laggards, contributing to the overall decline in the benchmark index.
Rupee’s Resilience and Market Statistics
While the stock market faced turbulence, the Pakistani rupee demonstrated resilience against the US dollar, appreciating by 0.31% in the inter-bank market. The State Bank of Pakistan reported the currency settling at 286.50, reflecting an increase of Re0.88.
The all-share index recorded a decrease in volume, dropping to 901.5 million from the previous session’s 1,056.7 million. Simultaneously, the value of shares declined from Rs28.8 billion to Rs23.4 billion.
Volume Leaders and Company Performance
WorldCall Telecom emerged as the volume leader with 176.7 million shares, followed by K-Electric Ltd with 76.3 million shares and Fauji Foods Ltd with 46.4 million shares. This diversity in volume leaders indicates a broad impact across various sectors.
Market Dynamics: Companies Traded and Their Performance
A total of 377 companies were traded on Friday, with 189 recording an increase, 170 facing a decline, and 18 remaining unchanged. This dynamic performance showcases the complexity of the market and the varied responses among listed companies.
Conclusion
In conclusion, the bearish session at the PSX highlights the inherent volatility in the stock market, influenced by factors such as profit-taking, sectoral performance, and global economic developments. Investors are advised to stay vigilant and informed in navigating the fluctuations for strategic decision-making.