The Pakistan Stock Exchange (PSX) experienced a slight recession on Friday, with the KSE-100 index falling into 327.60 points, or 0.28%, to close to 118,442.17.
The index reached a maximum of 119,405.91 and a minimum of 118,334.40 during the negotiation session.
The negotiation volume stood at 172.2 million shares, with a total value of RS 14.91 billion. Despite the decrease, the market remains relatively active with the key sectors that continue to show resilience.
The market closed lower than the end of the previous day of 118,769.77 points, which reflects some caution among investors in the middle of global uncertainties.
The negative closure effectively ended the six -day rally in the Stock Exchange.
During the day, the KSE-100 index increased by almost 600 points at negotiation opening hours. The index had reached 119,361.22, marking a gain of 591.45 points, or 0.5%.
The positive feeling was driven by the purchase activity in key sectors, including commercial banks, oil and gas exploration companies, oil marketing companies (WTO) and energy generation. The main stocks such as SSGC, Wafi, Mari, OGDC, PPL, HBL, NBP and UBL saw an ascending movement.
The rally in the stock market occurs in the midst of optimism that surrounds an imminent personnel level agreement (SLA) with the International Monetary Fund (IMF), which is considered a key step to stabilize the economy of Pakistan.
The governor of the State Bank of Pakistan (SBP), Jameel Ahmed, expressed the hope that the SLA will be signed soon, although he did not provide a specific timeline.
The market is also closely monitoring government efforts to resolve the circular debt of the energy sector, which, if addressed, improve cash flows for companies in this sector.
On Thursday, the Pakistan Stock Exchange (PSX) continued its upward impulse on Thursday, with the KSE-100 index exceeding the 119,000 mark during the negotiations per day, reaching a record.
The index won almost 800 points, closing 118,769.77, marking its sixth consecutive day earnings.
The increase was promoted by optimism with respect to the economic policies of Pakistan, including the second section of anticipated loan of the International Monetary Fund (IMF), reductions in electricity prices, tax relaxations and the possible resolution of the circular debt.
Prime Minister Shehbaz Sharif welcomed the record performance of the market, attributing it to the growing confidence of investors in the government’s economic agenda.
Investors were also driven by the expectations of the IMF personnel and efforts to resolve circular debt, which could improve the cash flow of companies in emerging sectors.
The market was particularly active due to a strong purchase of local mutual funds, which contributed to an increase in key sectors such as oil, gas and technology. Mari Petroleum saw a significant commercial value due to investor speculation before their meeting of the Board.
Despite the positive impulse, foreign investors sold shares worth RS720.8 million. The general negotiation volume of the market increased to 667.9 million shares, with sectors such as technology, oil and gas, fertilizers and refineries that lead the profits. Analysts advised caution and recommended reserve profits at higher levels while focusing on sectors with strong perspectives.
