KSE-100 fails to sustain gain, ends post-Eid session flat

The Pakistan Stock Exchange (PSX) ended another volatile session on a positive note after a 5-day Eid break. The benchmark KSE-100 Index inched up 0.22%, while volume and value of shares traded improved from the last close on Wednesday.

The indices extended gains from the previous session, amid improved market participation, as the benchmark KSE-100 Index touched an intra-day high of 41,364.60 (up by 356.75 points).

However, selling in the final stages of the trading session eroded the gains, and the benchmark index settled with an increase of 91.76 points to close at 41,099.58.

Market analysts said improvement in economic indicators, especially on account of current account surplus, drove the sentiment.

“C/A surplus and an increase in foreign exchange reserves boosted investor confidence,” Sana Tawfik, an analyst at Arif Habib Limited (AHL), told Business Recorder.

Pakistan’s current account posted a massive surplus of $654 million in March 2023 against a (revised) deficit of $36 million in February 2023, reported the State Bank of Pakistan (SBP) last week.

Moreover, the development on the International Monetary Fund (IMF) front is also reviving investors’ interest, added Tawfik.

However, the auto sector remained in the red zone, on account of negative results of automakers.

Pak Suzuki Motor Company records highest ever quarterly loss of Rs12.9bn

“The results were expected, which were being reflected in a decline in Large Scale Manufacturing (LSM) sector,” said Tawfik.

“In the near-term, the auto sector is expected to remain depressed due to a plunge in demand,” she added.

A report from Capital Stake noted that indices accumulated gains all day long but failed to hold on to gains at the end.

On the economic front, the rupee ended up largely stable against the US dollar, to settle at 283., a decrease of Re0.31 or 0.11% in the inter-bank.

On the corporate front, Indus Motor Company (IMC) announced the financial result for 3QFY23, posting a net profit of Rs3.216 billion alongside an Earnings Per Share (EPS) of Rs40.92, compared to Rs5.118 billion in the same period last year, depicting a decline of 37% YoY.

Sectors lifting the benchmark index higher included, banking (55.98 points), investment banking (42.43 points) and technology & communication (13.92 points).

Volume on the all-share index rose to 186.9 million from 173.8 million on Thursday (the market was closed owing to the Eid holidays) while the value of shares traded increased to Rs5.78 billion from Rs5.72 billion recorded in the previous session.

Pak Refinery Limited was the volume leader with 16 million shares followed by Fauji Foods Limited with 13.7 million shares and WorldCall Telecom with 10.4 million shares.

Shares of 331 companies were traded on Wednesday, of which 174 registered an increase, 131 recorded a fall and 26 remained unchanged.