The Pakistan Stock Exchange (PSX) experienced a slight downturn on Friday, with the KSE-100 Index falling by 327.60 points, or 0.28%, to close at 118,442.17.
During the trading session, the KSE-100 Index reached a high of 119,405.91 and a low of 118,334.40. The trading volume stood at 172.2 million shares, with a total value of Rs14.91 billion. Despite the decline, the market remained relatively active, with key sectors such as commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation showing resilience.
The market’s decline reflects caution among investors amid global uncertainties. Earlier in the day, the KSE-100 Index surged nearly 600 points during the opening hours, driven by positive sentiment and buying activity across key sectors. Major stocks like SSGC, WAFI, MARI, OGDC, PPL, HBL, NBP, and UBL saw upward movement.
Optimism Around IMF Agreement
The recent stock market rally was fueled by optimism surrounding an imminent staff-level agreement (SLA) with the International Monetary Fund (IMF). State Bank of Pakistan (SBP) Governor Jameel Ahmed expressed hope that the SLA would be signed soon, although no specific timeline was provided.
Investors are also closely monitoring the government’s efforts to resolve the energy sector’s circular debt, which, if addressed, could improve cash flows for companies in this sector.
Read: Pakistan Stock Exchange Hits All-Time 118,000 Points
On Thursday, the PSX continued its upward momentum, with the KSE-100 Index surging past the 119,000 mark during intra-day trading, reaching a record high. The index gained nearly 800 points, closing at 118,769.77, marking its sixth consecutive day of gains.
The surge was driven by optimism regarding Pakistan’s economic policies, including the anticipated second loan tranche from the IMF, electricity price reductions, tax relaxations, and the potential resolution of circular debt.
Prime Minister Shehbaz Sharif welcomed the market’s record performance, attributing it to growing investor confidence in the government’s economic agenda.
Despite the positive momentum, foreign investors sold shares worth Rs720.8 million. The market’s overall trading volume rose to 667.9 million shares, with sectors like technology, oil & gas, fertilizers, and refineries leading the gains. Analysts advised caution, recommending investors book higher-level profits while focusing on strong-prospect sectors.
