KSE-100 gains over 'year-end phenomenon'

A day after the KSE-100 hit its lowest level since July 2020, positive sentiment returned to the Pakistan Stock Exchange (PSX) in the latter stages of the trading session, as the benchmark index registered an increase of 1.19% on Thursday.

Meanwhile, volumes shrunk from the previous session.

Range-bound activity was witnessed in the first half of the session. However, towards the close, the index settled at 39,747.36, an increase of 467.93 points or 1.19%.

Index-heavy automobiles, cement and technology sectors ended with gains, while oil and gas marketing companies were in the red zone.

On Wednesday, the KSE-100 Index, under pressure for weeks, had closed with a fall of 523.48 points or 1.32% to settle at 39,279.43, its lowest level since July 2020.

The decline on Wednesday was mainly driven by delay in resumption of the International Monetary Fund (IMF) programme and massive economic uncertainty in the country. Additionally, a volatile political situation has dampened sentiment at the PSX.

However, the improvement on Thursday came on account of institutional financial closing, which is a year-end phenomenon that led to late buying.

“The situation would be back to square one from Monday onwards,” said Saad Khan, Head of Research at IGI Securities.

On the economic front, Pakistan’s rupee ended with a marginal loss for the eighth successive session against the US dollar, to settle at 226.41 after a fall of Re0.04 or 0.02%.

Sectors driving the benchmark index upwards included, cement (93.29 points), technology and communication (92.34 points) and fertilizer (69.21 points).

Volume on the all-share index declined to 227.8 million from 258.5 million on Wednesday. The value of shares traded decreased to Rs7 billion from Rs8.5 billion recorded in the previous session.

Bank Alfalah was the volume leader with 52.19 million shares, followed by K-Electric with 20.12 million shares, and Cnergyico PK with 13.12 million shares.

Shares of 325 companies were traded on Thursday, of which 214 registered an increase, 93 recorded a fall, and 18 remained unchanged.