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Monday July 22, 2024

PSX ends flat after bears claw it down from 80,000 points mark

Late selling rolled back early gains as investors harvested profits in overbought market, analysts say

By Web Desk
June 21, 2024
A trader is busy on call as resumes business at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/Files
A trader is busy on call as resumes business at the Pakistan Stock Exchange (PSX) building in Karachi. — PPI/Files

KARACHI: After a galloping start, the Pakistan Stock Exchange (PSX) flat-lined on Friday following a roller-coaster ride, with record highs, fueled by hopes of a larger as well as long-term bailout deal with the International Monetary Fund (IMF), traders said.

It brushed the 80,000 points mark in day trade; however, late selling rolled back early gains as investors harvested profits in an overbought market that has been on fire since the announcement of the budget.

The PSX’s benchmark KSE-100 Shares Index closed at 78,810.49 points, up 8.96 points or 0.01%, after touching an intraday high of 80,059.87— the highest level in history — and a low of 78,169.02.

On Thursday, the banking sector remained in the limelight and the index gained nearly 2,100 points to settle at a new record high of 78,802 points mark on the first trading session after the Eid holidays.

From the outset, the market seemed to build on its post-budget momentum as it reached new highs during the intraday trade.

EFG Hermes Pakistan's CEO Raza Jafri, while speaking to Geo.tv, said that the post-budget rally continues with Fitch's recent comments lending further credence to the view that Pakistan will be able to secure a new International Monetary Fund (IMF) programme.

"Domestic liquidity is also strong, with equities looking increasingly attractive given monetary easing has commenced," he said.

Selling pressure was observed in key sectors such as automobile assemblers, chemicals, cement, commercial banks, fertilisers, oil and gas exploration companies, and OMCs. Index-heavy stocks, including SHEL, SNGPL, PSO, OGDC, POL, and MEBL, posted considerable losses.

Meanwhile, Alpha Beta Core CEO and economic analyst Khurram Schehzad said that expectations from the budget FY25 paving the way for the larger and longer IMF program have improved local and foreign portfolio investors' confidence.

Earlier during the trading session, Mohammed Sohail, CEO of Topline Securities, said positive sentiments had been led by the tax-laden budget, "which investors feel will help in securing the IMF long-term loan".