KARACHI: Investor sentiment at the Pakistan Stock Exchange (PSX) remained positive during the week ending on March 7, 2025.
The benchmark KSE-100 index rose by 1,147 points, or 1 percent, week-on-week, closing at 114,399 points compared to 113,250 points the previous week. However, trading activity saw a decline of 41 percent, with average daily volumes on the ready counter dropping to 291.43 million shares, down from 492.23 million shares in the prior week.
The benchmark KSE-100 index gained 1,147 points, or 1 percent, on a week-on-week basis, closing at 114.399points compared to 113,250 points in the previous week. However, trading activity declined by 41 percent, with average daily volumes on the ready counter dropping to 291.43 million shares from the previous week’s 492.23 million shares.
The average daily traded value on the ready counter also saw a dip of 24 percent, reaching Rs 18.21 billion compared to Rs 24.02 billion in the previous week. Total market capitalization increased by Rs 144 billion to Rs 14.125 trillion end of the last week up from Rs 13.981 a week earlier.
BRIndex100 gained 270 points during the last week to close at 12,138 points up from 11,868.02 points with average daily turnover of 252 million shares.
BRIndex30 gained 1,654 points on week-on-week basis to close at 37,261 points with average daily trading volumes of 169 million shares.
Analysts at AHL Research said that stock closed higher due to favourable investor sentiment surrounding discussions on the IMF’s visit for the first review under the $7 billion EFF.
Sector-wise positive contributions came from E&Ps (656 pts), Cements (451 pts), OMCs (346pts), Power (177 pts), and Glass (114pts). Meanwhile, the sectors that contributed negatively were Technology & Communication (122 pts), Textile (97pts), Autos (89 pts), and Commercial banks (48 pts). Scrip-wise positive contributors were PPL (290 pts), PSO (247pts), OGDC (236 pts), HUBC (185 pts), and FCCL (156pts). Whereas, scrip-wise negative contributions came from SYS (84pts), MTL (77pts), MEHT(75 pts), BAHL (74pts), and UBL (64 pts).
Foreigner selling continued during this week clocked in at $5.3 million compared to a net sell of $6 million last week. Major selling was witnessed in E&P $2.7 million followed by Commercial Banks $2.3 million. On the local front, buying was reported by Banks or DFIs $43.4 million and Companies $7.5 million.
On the economic front, inflation in Feb’25 dropped to a 113-month low of 1.5 percent YoY, the lowest since Sep’15 (1.3 percent). Additionally, a T-Bill auction was held this week, with yields on 3M bills remaining unchanged, while 6M and 12M papers saw a decrease of 1bps each.
For 8MFY25, the trade deficit widened by 6.3% YoY to USD 15.8bn. On a positive note, OMC sales grew by 4% YoY during the same period. However, urea and DAP sales declined by 37% and 64% YoY, respectively. Furthermore, the SBP’s foreign exchange reserves increased by USD 27mn WoW, settling at USD 11.2bn, while the PKR depreciated slightly by 0.05%, closing at 279.82 against the USD. The KSE-100 index closed at 114,399 points, reflecting a WoW gain of 1,147 points, or an increase of 1.01%.
According to JS, the week began on a negative note with investors remaining cautious as the IMF team reviewed targets in the first review of Pakistan’s extended fund facility.
Pakistan’s tax collection target fell short of Rs606 billion against the target of Rs7.95 trillion for first eight months of FY25. However, positive developments during the week propelled the market to a positive close. CPI for Feb-2025 clocked in at 1.5 percent, marking the lowest reading in nearly a decade. This kept Real interest rates (RIR) above 10ppt.
Furthermore, govt reached a deal with commercial banks to borrow Rs1.25 trillion at a rate of 1 percent below the prevailing KIBOR. This comes as a major breakthrough for the energy sector of Pakistan and can unlock significant cash flows for companies stuck in circular debt.
Additionally, govt has also proposed to IMF to reduce tax rates for major sectors which includes real estate, tobacco and beverage. Pakistan’s monthly trade balance figure clocked in at $2.3 billion for the month of Feb, up 33 percent YoY. Furthermore, cement dispatches increased 10 percent YoY in Feb-2025. Lastly, SBP reserves remained stable WoW at $11.25 billion.
Copyright Business Recorder, 2025