The Pakistan Stock Exchange (PSX) closed on a negative note on Wednesday, with the benchmark KSE-100 index down 310.21 points or 0.32 percent at 95,546.45.
The market witnessed a day of volatility, with the index touching a high of 96,711.33 and a low of 95,311.97 during the trading session.
The total volume of shares traded stood at 565,381,751 representing a value of Rs 24.75 billion. Despite a strong start, the market struggled to maintain momentum throughout the day, resulting in a downward adjustment after the close.
The decline followed the previous day’s close of 95,856.66, reflecting a slight downward move. Investors looked cautious, with limited trading activity in key sectors leading to an overall decline in market performance.
Earlier, large-scale buying was seen in key sectors including oil and gas exploration (E&P) companies, oil and gas marketing companies (OMCs), sugar and allied industries, technology and communications, and banks. .
On Tuesday, the benchmark KSE-100 index closed above the 95,000 mark for the first time, up 861 points or 0.91 percent to close at 95,856.67.
Market analysts attribute the positive momentum and rising investor confidence to rising economic optimism and easing inflationary pressures, which are expected to fall below 5% for November.
In a related development, Pakistan recorded a current account surplus of $349 million in October 2024, marking the third consecutive month in positive territory, according to data released by the State Bank of Pakistan (SBP). is
Overall, the current account surplus for the first four months (July-October) of FY25 stood at $218 million, an improvement from the $1.53 billion deficit in the same period last year.
Net foreign direct investment (FDI) in Pakistan increased by 32.3% during the first four months of the current fiscal year (FY25), reaching $904.3 million.
The federal government has decided to approach the Supreme Court to annul the injunction issued by the Islamabad High Court (IHC). The order temporarily stopped the collection of 15 percent additional income tax from banks for excessive lending to the finance ministry.
The PSX has been on a winning streak for a few weeks, supported mainly by rising investor confidence and improved economic indicators. The stock market gained 1.6% last week, closing at a record high of 94,763 points.
According to a recent report by BloombergPakistan’s stocks are expected to rise by more than a quarter next year by the end of 2025 as the country’s economy improves and the currency stabilizes under a loan program with the IMF.
The benchmark KSE-100 index is forecast to rise to 127,000 points by December 2025, or a 34 percent increase, from 94,704 points at the close last Friday, Topline Securities Ltd. announced on Nov. 16, Arif Habib According to Ltd. The index is targeting to reach 120,000 points, an increase of 27 percent.
“The stage is set for a possible market re-rating with falling interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.
