A volatile session was observed at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index swung in both directions before closing nearly flat on Thursday.
The market kicked off on a positive note, with the KSE-100 hitting an intra-day high of 118,367.81.
However, profit-taking witnessed in the later part of trading eroded most of the early gains, dragging the index to an intra-day low of 116,857.61.
At close, the KSE-100 settled at 117,119.65, an increase of 111.57 points or 0.10%.
Experts attributed the early buying momentum to improved macroeconomic indicators, including a decline in the inflation rate, raising hopes for a further cut in the policy rate.
“CPI for December 2024 came in at an encouraging 4.1% (the lowest since April 2018), as macroeconomic stabilisation under the International Monetary Fund (IMF) directives continues to take root,” said Intermarket Securities in a note.
“Equities, especially cyclicals, should remain an attractive vehicle for investment as the lagged impact of interest rate cuts gradually leads to improvements in consumption and industrial output going forward.”
Pakistan’s headline inflation clocked in at 4.1% on a year-on-year basis in December 2024, a reading below that of November 2024 when it stood at 4.9%, showed Pakistan Bureau of Statistics (PBS) data on Wednesday.
Topline Securities said investors appeared to capitalise on the heightened market activity, opting to book profits after recent gains.
“This led to mixed sentiment across sectors, with select stocks facing selling pressure while others managed to sustain upward momentum,” it said.
On Wednesday, PSX kicked off the new year with a bang as the benchmark KSE-100 Index settled above the 117,000 level after a gain of nearly 1,900 points.
A mixed trend was seen with buying in the index-heavy banking sector. Meanwhile, selling pressure was seen in energy sectors including oil and gas exploration companies, OMCs and power generation.
Index-heavy stocks including HBL, JSBL and MEBL traded in the green. Whereas, HUBCO, PSO, SNGPL, POL, OGDC, MARI and PPL traded in red.
Internationally, Asian stocks began the year on a dour note on Thursday as they struggled for traction after a jittery close to 2024, while the US dollar charged higher and investor sentiment stayed cautious ahead of Donald Trump’s return to the White House.
The start of the New Year was shaping up to be a less favourable one for equities, as uncertainty over the policies of incoming US President Trump and a more hawkish Federal Reserve outlook looked set to dominate the market rhetoric for now.
While global shares, closed out 2024 with a strong yearly gain of nearly 16%, they had clocked a monthly loss of more than 2% in December.
The same was the case for MSCI’s broadest index of Asia-Pacific shares outside Japan, which slid 1.2% in December though it registered a gain of more than 7% for 2024.
The index lasted down 0.5% in the early Asian session on Thursday, with volume thinned due to a trading holiday in Japan.
Meanwhile, the Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Thursday. At close, the currency settled at 278.64 for a loss of Re0.09 against the greenback.
Volume on the all-share index increased to 1,037.86 million from 956.27 million on Wednesday.
The value of shares rose to Rs46.57 billion from Rs46.44 billion in the previous session.
Fauji Foods Ltd was the volume leader with 89.48 million shares, followed by WorldCall Telecom with 72.00 million shares, and Telecard Limited with 61.07 million shares.
Shares of 464 companies were traded on Thursday, of which 193 registered an increase, 225 recorded a fall, while 46 remained unchanged.
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