PSX Closing Bell: On The back Foot

August 18, 2023 (MLN): The benchmark KSE-100 index opened on a positive note, however, the gains were taken away towards the end of the session possibly due to investors adopting a risk-off stance to conclude the week.

Consequently, the index closed at 48,218.5 with a loss of 107.35 points or 0.22% DoD.

The index traded in a range of 418.96 points showing an intraday high of 48,615.14 and a low of 48,196.18.

Total Volume of the KSE100 Index was 132.258 million shares.

While the index lost 205.9pts or 0.43% WoW.

Additionally, some investors likely opted for profit-taking activities as they criticized the Election Commission of Pakistan (ECP)’s decision to go for a fresh delimitation of constituencies.

This is because contrary to the anticipated schedule of holding the general elections within 90 days after the dissolution of the National Assembly, the fresh delimitation of constituencies will take around four months, with the final publication of the Delimitation to be released on December 14, 2023.

This indicates that the general elections may not be held before the first quarter of next year.

The delay in the general elections is likely to affect the confidence of the investors and the performance of the economy, as well as create political tensions and conflicts among different parties.

Of the 100 index companies 33 closed up, 56 closed down, 5 were unchanged while 6 remained untraded.

KSE100 Index was let down by Commercial Banks with 64.68, Cement with 48.66, Fertilizer with 17.42, Refinery with 13.35 and Technology & Communication with 12.24 points.

Companies dragging the index lower were LUCK with 30.43, UBL with 24.78, POL with 13.07, MCB with 12.97 and MEBL with 11.32 points.

KSE100 index was supported by Food & Personal Care Products with 18.91, Oil & Gas Exploration Companies with 13.98, Power Generation & Distribution with 10.89, Miscellaneous with 9.29 and Chemical with 6.91 points.

Companies adding points to the index were PPL with 36.45, HUBC with 13.55, NESTLE with 12.89, PABC with 9.29 and BAFL with 6.64 points.

In the broader market, the All-Share index closed at 31,958.75 with a net loss of 50.35 points.

Total market volume was 254.814 million shares compared to 226.935 from the previous session while traded value being recorded at 10.41 billion showing an increase of Rs.0.39 billion.

There was 128,239 trades reported in 328 companies with 124 closing up, 183 closing down and 21 remaining unchanged.

On the economic front, the Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.78% WoW and 27.57% YoY during the week ended August 17, 2023, reflecting the persistent inflationary pressures in the economy.

In addition, the Pakistani Rupee remained under strain as it depreciated by 7.29 rupees or 2.46% over the week against the greenback, interestingly, PKR’s Real Effective Exchange Rate Index (REER) showed an increase of 4.4% MoM in July 2023.

Adding to these developments, following four consecutive periods of current account surpluses, the country witnessed a significant shift, recording a substantial current account deficit of $809 million in July 2023.

Meanwhile, there is still no major development pertaining to the gas sector’s circular debt, as OGDC clarified today.

KSE-100 Weekly time-frame chart

On the global front, China’s Evergrande Group, once the country’s second-largest property developer officially filed for bankruptcy in New York yesterday.

A bearish trend has emerged in the U.S. stock market as the S&P 500 index has fallen by 5.26% from this year's high, with the futures currently down by 0.51% today. This is the first time the index has formed a lower low in four months.

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