PSX Closing Bell: Placebo Effect

February 20, 2024 (MLN): The benchmark KSE-100 index ended the day little changed at 60,464, erasing an earlier gain of 1.3%, as oil and gas companies continued to exert downward pressure on the market.

On the other hand, pharmaceutical stocks surged 7.5%, with all companies included in the KSE-100 index hitting their upper circuit in today's session after the government relaxed drug pricing policies.

However, the pharma rally failed to lift overall Pakistani stocks as the energy sector shrugged off the positive momentum.

The index traded in a range of 816.68 points showing an intraday high of 61,237.51 (+777.76) and a low of 60,420.84 (-38.91) points.

The total volume of the KSE-100 index was 234.891 million shares.

The political situation remains fluid which is expected to keep volatility in the market high, said Arif Habib Limited.

Yesterday, the index had gained about 587 points or 1%. Despite the rebound, a lot of work is still required to suggest that something sustainable to the upside is underway, the brokerage house added in its post-closing market note on Monday.

According to Fitch Ratings, the near-term political uncertainty may complicate the country’s efforts to secure a financing agreement with the International Monetary Fund (IMF), to succeed the Stand-By Arrangement (SBA) expiring in March 2024.

In today's session, advancers to decliners remained equally distributed, with 47 companies closing up and 43 closing down.

Meanwhile 6 were unchanged and 4 remained untraded.

KSE-100 index was supported by Pharmaceuticals with 94.71, Power Generation & Distribution with 71.88, Technology & Communication with 59.36, Oil & Gas Marketing Companies with 31.99, and Food & Personal Care Products with 19.31 points.

On the contrary, the index was let down by Oil & Gas Exploration Companies with 133.16, Commercial Banks with 54.13, Textile Composite with 33.4, Miscellaneous with 29.26, and Cement with 27.32 points.

Companies adding points to the index were HUBC with 65.62, SYS with 45.07, PSO with 34.24, HINOON with 28.5, and SEARL with 21.61 points.

Meanwhile, companies that dragged the index lower were OGDC with 49.62, PPL with 43.84, MARI with 36.37, ILP with 32.77 and PSEL with 29.78 points.

On the corporate front, the Bank of Punjab (PSX: BOP) announced its results for 2023, wherein the bank’s profit after tax rose 5.49% YoY to Rs11.25 billion [EPS: Rs3.39].

The bank also paid a hefty dividend of Rs1 per share.

In the broader market, the All-Share index closed at 40,736.58 with a net loss of 56.36 points.

Total market volume was 364.443 million shares compared to 261.800 from the previous session while traded value was recorded at Rs10.93 billion showing an increase of Rs1.02bn.

There were 161,250 trades reported in 348 companies with 174 closing up, 154 closing down and 20 remaining unchanged.

On the economic front, the country posted a current account deficit of $269 million in January. Moreover, it saw the biggest negative FDI since October 2018, worth $173m.

Meanwhile, the cash-strapped nation attracted $142m under Roshan Digital Accounts during the month.

To note, the KSE-100 has gained 19,012 points or 45.86% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative decrease of 1,987 points, equivalent to 3.18%.

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