PSX Closing Bell: Houdini

May 31, 2024 (MLN): Stocks at the Pakistan Stock Exchange (PSX) rebounded strongly on Friday after falling for much of the week, with a softer than previously anticipated inflation reading expected for May bolstering bets for an interest rate cut in the upcoming meeting.

The benchmark KSE-100 index ended Friday's trading session at 75,878.48 showing an increase of 1,000.35 points or 1.34%.

The index remained positive throughout the day, showing an intraday high of 75,953.74 (+1075.62) and a low of 74,989.26 (+111.14) points.

The total volume of the KSE-100 index was 243.53 million shares.

The central bank is scheduled to meet on June 10, 2024, to announce its next decision. Investors are ramping up bets for at least 100 basis points (bps) cut.

Moreover, headline inflation is expected to decelerate significantly to about 13-14% YoY in May 2024, pushing real interest rates above 8%.

Of the 100 index companies 71 closed up, 24 closed down, while 5 were unchanged.

KSE-100 index was supported by Commercial Banks (223.37pts), Technology & Communication (200.32pts), Fertilizer (196.96pts), Power Generation & Distribution (128.7pts), and Cement (63.03pts).

On the flip-side, the index was let down by Oil & Gas Marketing Companies (9.76pts), Automobile Parts & Accessories (4.94pts), Tobacco (3.74pts), Refinery (2.39pts), and Sugar & Allied Industries (1.67pts).

Companies adding points to the index were SYS (171.65pts), HUBC (113.64pts), MCB (76.7pts), MEBL (72.97pts), and ENGRO (72.5pts).

Meanwhile, companies that dragged the index lower were PSO (7.53pts), POL (6.7pts), THALL (4.94pts), NBP (4.86pts), and INDU (4.69pts).

In the broader market, the All-Share index closed at 48,828.32 with a net gain of 493.68 points.

Total market volume was 523.30 million shares compared to 410.58m from the previous session while traded value was recorded at Rs20.57 billion showing an increase of Rs5.65bn.

There were 246,456 trades reported in 431 companies with 234 closing up, 140 closing down and 57 remaining unchanged.

To note, the KSE-100 has gained 34,426 points or 83.05% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 13,427 points, equivalent to 21.5%.

Copyright Mettis Link News