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Sunday April 14, 2024

KSE-100 jumps to highest since 2017 on positive cues

However, stock market moves towards correction, shedding over 100 points after surpassing 49,000 level

By Business Desk
August 03, 2023
Pakistani stockbroker monitors the latest share price development during a trading session at the Pakistan Stock Exchange in Karachi, on March 13, 2023. — INP
Pakistani stockbroker monitors the latest share price development during a trading session at the Pakistan Stock Exchange in Karachi, on March 13, 2023. — INP

The Pakistan Stock Exchange (PSX) on Thursday moved towards correction, shedding over 100 points after surpassing the 49,000 level — the highest since 2017.

During the intraday trade, the PSX's benchmark index gained 560.20 points or 1.15% to jump to 49,324.50 points, the highest since June 9, 2017.

However, the stock market closed the day on a negative note as the benchmark index lost 153.37 points or 0.31% to settle at 48,611.18 points.

According to a report by Arif Habib Limited, the weekly draw on liquidity at 49,000 was hit today after which the market came off in what is a welcome dip.

The benchmark index has gained 7,871 points since Pakistan signed a staff-level agreement with the International Monetary Fund for the $3 billion Standby Agreement.

Market analysts have attributed the constant rise in the market to a host of reasons — including the status quo maintained in the policy rate by the State Bank of Pakistan (SBP).

Head of Equities at Intermarket Securities Raza Jafri told Thenews.com.pk that the market has reacted positively to unchanged interest rates as the bullish momentum continued in August.

"New liquidity has come from foreign investors and continued buying by sponsors (share buybacks)," Jafri said.

He also noted that some profit-taking is possible as the results season picks pace, but the overall sentiment for FY24 remains bullish.

Capital market expert Saad Ali said that optimism continues on the back of investor perception of lower macro risks, political disruptions, and encouraging corporate results.

"The status quo decision in this week's MPC was better than market expectations which reinforced the positive investor sentiment driving the current rally," Ali added.

Shares of 367 companies were traded during the session. At the close of trading, 129 scrips closed in the green, 216 in the red, and 22 remained unchanged.

Cynergico PK Limited was the volume leader with 33.21 million shares traded, losing Rs0.08 to close at Rs3.67. It was followed by K-Electric Limited with 25.42 million shares traded, losing Rs0.01 to close at Rs2.35 and Oil & Gas Development Company Limited with 24.52 million shares gaining Rs0.18 to close at Rs104.26.