Even though the Pakistan Stock Exchange reached 75,500 points, it dropped by 250 points later in the day due to investors selling stocks to make profits. This happened mainly because people were unsure about the government’s plans to cut spending in the next budget.
The stock market began positively and reached a high of 75,513.89 points in the morning, but it couldn’t maintain this momentum. In the afternoon, it dropped due to factors like high inflation and a weak currency.
Investors were worried about the government’s discussions with the International Monetary Fund (IMF) for a new loan program. They feared the government might cut spending in the next budget.
Additionally, there were concerns about the money owed to China for projects under the China-Pakistan Economic Corridor (CPEC).
Later in the day, investors sold their stocks to make profits, causing the market to drop to 74,835.48 points. The stock market closed below the 75,000 mark.
Ahsan Mehanti, Managing Director of Arif Habib Corp, said, “Stocks ended the day negatively due to concerns about the economy.”
The Pakistan Stock Exchange (PSX) experienced a decline due to several factors. These include the National Accounts Committee’s approval of low economic growth (2.4%) alongside high inflation (26%) in the fiscal year 2024, a decrease in Roshan Digital Account (RDA) inflows in April, a weaker rupee, and uncertainty surrounding negotiations on CPEC dues.
At the end of trading, the KSE-100 index fell by 250.10 points, settling at 74,956.67.
According to Topline Securities, Wednesday was a confusing day for the market. While the KSE-100 index stayed near the 75,000 mark for most of the session, a sudden surge in selling activity in the last hour pushed it below 75,000. This behavior was likely due to the absence of positive news to keep the market moving upward.
Investors were cautious due to ongoing negotiations between the government and the IMF, as well as expectations of further austerity measures in the upcoming budget. This led some investors to sell stocks to secure profits when the index was above 75,000.
Arif Habib Limited (AHL) noted that the PSX saw increased consolidation around the 75,000 level.
“It seems like the market might face some downward movement soon, possibly in the next few weeks. The support level for the near future is around 74,000 points,” AHL commented.
Trading activity increased overall, with 584.5 million shares traded compared to 462.3 million shares traded on Tuesday. The total value of shares traded was Rs17.7 billion.
Shares of 393 companies were traded. Out of these, 132 stocks saw gains, 236 went down, and 25 remained unchanged.
Hum Network had the highest trading volume with 71.3 million shares traded, gaining Rs 0.13 to close at Rs 12.03. It was followed by Pace (Pakistan) with 46.6 million shares traded, gaining Rs1 to close at Rs4.32, and K-Electric with 34.5 million shares traded, losing Rs0.13 to close at Rs4.71.
Foreign investors bought shares worth Rs 123.2 million more than they sold, according to the NCCPL.
