KSE-100 index remains stable amid economic concerns
KARACHI: The Pakistan Stock Exchange (PSX) closed on Thursday due to weak earnings outlook associated with increased tariffs on industries.
The market started with selling pressure where it lost 558 points in the first hours of trading.
“Spiking industrial electricity tariffs, uncertainty ahead of the International Monetary Fund (IMF) board review on January 28 and the policy announcement of the State Bank of Pakistan (SBP ) scheduled for January 24, amid soaring inflation and investor concerns over the falling rupee played a catalytic role in the negative close,” said Ahsan Mehanti of Arif Habib Corp.
The Pakistan Stock Exchange’s KSE-100 equity index fell 0.02% or 7.46 points to close at 44,825.97 points. The KSE-30 equity index gained 0.08%, or 14.02 points, to close at 17,665.79 points.
Rising international crude oil prices were the main concern for investors, along with a positive Covid-19 ratio up more than 11%, an analyst at Pearl Securities said.
However, a late recovery was seen in the market amid rumors of inflows from the government organization through mutual funds, he added.
No less than 348 scripts were active, including 169 advanced, 158 rejected and 21 unchanged.
Ready market volumes were 254.20 million shares, compared to turnover of 236.93 million shares in the last trading session.
“Looking ahead, we expect the market to take some direction next week once the IMF review and MPC meeting takes place. Therefore, we recommend our investors to adopt the strategy “ Sell on Strength” for future sessions.
Companies that posted the highest gains included Sapphire Fiber up Rs63 to close at Rs913/share, and Siemens Pak (XD) up Rs17.16 to close at Rs638.16/share.
The companies that recorded the most losses were Nestlé Pakistan down Rs 100 to close at Rs 5,400/share, and Sapphire Textile down Rs 84 to close at Rs 1,040/share.
The highest volumes were seen in WorldCall Telecom with revenue of 27.94 million shares. The certificate gained 2 paisas to close at Rs2.18/share, followed by Cnergyico Pk with revenue of 18.84 million shares, losing 11 paisas to close at Rs6.40/share. Ghani Global remained third with revenue of 17.50 million shares, losing 12 paisas to finish at Rs20.48/share.