Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed lower on Friday after witnessing a range-bound session. The index ended week with 1.14% decline on worries of weakening local currency, current account deficit, and lack of positive triggers.
On Friday, the KSE-100 started positive, hitting an intra-day high of 47,853.55. However, profit-taking erased the gains and pushed the index into negative territory.At close, the benchmark index settled at 47,671.22, down near 80 points or 0.17%.
“The equity market was volatile today [Friday] and closed negative amid culmination of the roll-over week,” brokerage house Ismail Securities said in its market report.
On Thursday, a positive run had been witnessed at the PSX, with the benchmark index registering an increase of over 330 points.
Major positive contribution to the index on Friday came from HMB, ENGRO, MEBL, SCBPL and FFC as they cumulatively contributed 89 points to the index. On the flip side OGDC, TRG, PPL, BAHL and UPFL lost value to weigh down on the index by -89 points, according to brokerage house Topline Securities.
KSE 100 Index declined by 1.14% on week-on-week basis.
“This decline can be attributed to C/A number for the month of July 2023 that came in on last Friday - posting a deficit of $809mn after 4 consecutive months in which C/A was surplus,” the brokerage house said.
News of further hike in electricity prices and continuous decline in rupee value against US dollar weighed down on investor sentiment as they feared that it would result in increase in inflation, which might result in further increase in policy rate going forward, it added.
The Pakistani rupee hit a new record low against the US dollar, as it settled at 301 in the inter-bank market on Friday. At close, the rupee settled at 301 after a decrease of Re0.78 or 0.26%, as per the State Bank of Pakistan (SBP).
Volume on the all-share index decreased to 192.04 million from 251.67 million on Thursday.
The value of shares declined to Rs6.53 billion from Rs12.8 billion in the previous session.
WorldCall Telecom remained the volume leader with 18 million shares, followed by JS Bank Ltd. with 16.14 million shares and Bankislami Pak. with 12.5 million shares.
Shares of 329 companies were traded on Friday, of which 100 registered an increase, 204 recorded a fall, and 25 remained unchanged.