PSX weekly report: KSE-100 index sheds 840 points

KARACHI: After witnessing a new high last week, the KSE-100 index of the Pakistan Stock Exchange (PSX) dropped by 1.2 percent, shedding 840.65 points as the SBP decided to keep the policy rate unchanged at 22 percent for the sixth time in its monetary policy meeting held this week, ARY News reported on Saturday.

The volume also witnessed a negative trajectory of 21 percent in terms of shares traded and 8 percent in value (US$mn) compared to the last week.

Throughout the week, the 100 index displayed a seesaw trajectory, fluctuating within a range of 2,738 points before closing at 71,902 points compared to the previous 72742.75 points close last week.

During the week, the KSE-100 index marked a significant milestone by surpassing an all-time high of 73,300 points.

Despite the notable achievement, the total value of weekly transactions stood at Rs. 95.61 billion, reflecting a decline of Rs. 220 billion, eventually settling at Rs. 9,797 billion.

Key Sectors Traded:

During the week, trading activity in the market was characterized by significant participation across various sectors, with key sectors contributing to the overall market movement.

The majority of trading activity was attributed to the sectors (including Autos, Fertilizers, Pharma, Chemicals, Engineering, Refinery, etc) accounting for 45 percent of the shares traded.

READ: Bulls return to PSX as shares gain over 1,200 points

The Tech and Communication sector was closely behind, representing 16 percent of the trading volume, and the Banks and Power sector, contributing 11 percent respectively.

Additionally, the Food sector accounted for 9 percent of the shares traded, while the Cement sector constituted 8 percent.

Factors:

Inflation for the month of Apr-24 came in at 17.3 percent which is a 23-month low while SBP foreign exchange reserves were maintained at US$ 8 billion.

IMF Executive Board on the other hand approved US$1.1bn final tranche of SBA to Pakistan, which is expected to raise reserves levels to US$9bn next week.

As per the market analysis report, the trade deficit of April 24 stood at a 15-month high of US$2.4 billion reflecting a 10 percent year-on-year (YoY) increase in exports compared to a 58 percent jump in imports.

In other news, FBR faced a shortfall in revenue collection on April-24, taking 10FY24 shortfall to Rs 48 billion compared to its target.

The government also slashed petrol by Rs5.4/ltr and diesel rates by Rs8.4/ltr. In the forex market, PKR reached a 15-month high against the Yen, which encouraged auto assemblers to announce price cuts to boost sales.

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