PSX: buying at bourse, KSE-100 settles with modest gains
- Benchmark index settles at 169,969.32
The Pakistan Stock Exchange's KSE-100 Index gained over 350 points on Wednesday, closing higher despite intra-day volatility, amidst a new MoF bond market plan and a stronger rupee.
- Ministry of Finance's bond market action plan.
- Pakistani rupee's marginal gain against the US dollar.
- Global bond market volatility and stock performance.
Buying interest was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing with a gain of over 350 points on Wednesday.
The benchmark index initially moved higher, climbing to an intra-day high of 171,492.52 during the opening hours of trading, indicating strong buying interest.
However, the early gains were gradually eroded as the session progressed, with the index moving largely sideways around the 171,000 level through mid-day before coming under renewed selling pressure.
The market remained under pressure during the second half, with the KSE-100 steadily declining and touching an intra-day low of 169,872.13 near the end.
At close, the benchmark index settled at 169,969.32, up 368.92 points or 0.22%.
Top positive contribution to the index came from HBL, MEBL, LUCK, FATIMA and FFC, as they cumulatively contributed 311 points to the index, brokerage house Topline Securities said in its post market report.
“The KSE-100 gained 1.12% intra-day on selective buying but pared most gains amid profit-taking and geopolitical concerns over the US-Iran conflict, closing at 169,969 points, up 0.22% DoD,” it said.
In a key development, the Ministry of Finance (MoF) on Tuesday unveiled a Strategic Action Plan for Pakistan’s Local Currency Bond Market (LCBM) under its International Monetary Fund (IMF)-supported programme pledge to address market bottlenecks, while targeting deeper secondary-market liquidity, a broader investor base, more predictable government borrowing and reforms to the legal, tax and financial-market infrastructure governing rupee-denominated securities.
The PSX on Tuesday came under renewed selling pressure as rising global crude prices and persistent Middle East geopolitical tensions triggered a late-session sell-off, pushing the KSE-100 Index below the 170,000-point level. The index fell 825.22 points, or 0.48%, to close at 169,600.41 points.
Internationally, global bonds wobbled on Wednesday and were set for their worst month in years, hit by a toxic mix of deteriorating government finances, a glut of issuances and rising inflation as the seven-month-old US-Israeli war on Iran keeps energy costs elevated.
Meanwhile, stocks fared better, largely unfazed by the surge in bond yields and were upbeat in Asia.
The rise in borrowing costs has been front-and-centre for investors, given that sovereign yields are an anchor for global markets, a reference price for investing in riskier stocks and a benchmark for mortgages and corporate borrowing.
While a persistently higher risk-free rate increases the cost of refinancing for companies and weighs on growth, its impact on stocks has thus far been relatively limited.
MSCI’s broadest index of Asia-Pacific shares excluding Japan rose 0.2% in early trading and was on track for a monthly fall of just over 1%.
Japan’s Nikkei rose 0.9% and was set to end the month little changed, while South Korea’s Kospi was headed for a monthly gain of 1.4%.
Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Wednesday. The local unit closed the day at 277.11, a gain of Re0.01 against the greenback.
Volume on the all-share index increased to 591.23 million from 568.04 million recorded in the previous close.
The value of shares declined to Rs20.19 billion from Rs20.81 billion in the previous session.
Pak Int.Bulk was the volume leader with 73.45 million shares, followed by Kohinoor Spining with 58.39 million shares, and Tasdeeq Information with 50.88 million shares.
Shares of 495 companies were traded on Wednesday, of which 253 registered an increase, 195 recorded a fall, and 47 remained unchanged.