Tag: Pakistan Stock Exchange

Stock brokers saw a sharp rise in the Pakistan Stock Exchange (PSX) as bullish speculators participated in the exchange. The KSE-100 which is the benchmark index of the PSX recorded a 3,000-point recovery in the index after two full days of profit taking.

Earlier in the week, the KSE-100 recorded the largest single day decline in its history of 4,795 points as panic selling gripped investors. Investors are growing weary of the unprecedented level of volatility in the exchange.

Experts are predicting that the profit taking behavior could have been due to a recent bill that was proposed in Islamabad earlier this week. The proposed bill seeks to impose restrictions on the trading of securities by non-filers and tax evaders.

While this bill has its merits and will be invaluable in the Islamabad’s journey to curb tax evasion, it is impacting businesses significantly. While experts were initially highlighting how the bill could be detrimental for business growth, it seems like it is not the case.

It is possible that non-filers sold off their shares in order for a tax paying member of their household to purchase them instead. Such behaviors are common are probably what led to the sharp decline and rise in the PSX as the bill would have frozen non-filer trading activities.

If a significant amount of non-filers end up permanently pulling their funds out of the exchange before the restrictions are levied, the market will suffer. The downward trend that took charge of the market earlier could return as currently, investors have lost some of their trust in the market. This is likely to fuel further profit taking.

In the event of a persisting slump in the PSX, firms will not be able to raise funds easily. They will now have to issue more shares to gather the same amount of money now. This is because earlier, share values tanked with some companies such as Mari Petroleum losing as much as 10 percent of their value.

The fall in share prices and the high fluctuations in the exchange are likely to cause a trend in company executives to favor the use of debt for operations instead of the sale of more equity. However, this will reduce dividend payments to shareholders as cash inflows from projects will then be used to finance interest payments on loans instead and lower dividends might reduce share values further.

However, the low stock prices paved way for speculators as they saw an opportunity to make a quick profit due to market volatility. For now, experts have their eyes set on the PSX and are wondering if it can continue to exhibit steady growth rates as it has in the past few months or if the surge in volatility has just begun. 

The stock market is bouncing back from the steep decline recorded Tuesday, which led to the slashing of over 1,000 points from the KSE-100 Index.

According to reports, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index gained 1,277.16 points, or 1.17%, to reach an intraday high of 110,173.81, reflecting sustained investor interest amid broader economic stability.

Wednesday’s rebound, reports said, was driven by renewed investor optimism and anticipation of an upcoming rate cut by the State Bank of Pakistan (SBP).

The market’s rally reflected strengthened sentiment, as participants shifted focus from Tuesday’s volatility to the broader economic recovery narrative.

Key drivers include a stable rupee, government incentives for legal remittance channels, and the emigration of over one million skilled workers in the past three years. Reforms targeting illicit foreign exchange trading and easing global inflation have also supported growth.

Remittance inflows reached $14.8 billion during the first five months of FY2025, marking a 33.6% year-on-year increase, according to the SBP. November inflows alone added up to $2.9 billion, up 29.1%, as compared to the same period last year, though slightly lower than October’s figure.

Macroeconomic improvements continue to underpin positive market sentiment. Inflation dropped to 4.9% in November, its lowest level since April 2018, paving the way for monetary easing. Analysts widely expect the SBP’s Monetary Policy Committee to cut interest rates by 200 basis points during its December 16 meeting, following a cumulative 700bps reduction since June.

Foreign reserves received a boost from Saudi Arabia’s extension of a $3 billion deposit for another year and trade agreements worth $560 million. Petroleum sales surged to a 25-month high of 1.58 million tons in November, while the government’s Rs353 billion Ijarah Sukuk auction provided additional liquidity.

Investors are closely monitoring the government’s fiscal measures aimed at taxing bank profits from investments in government securities. A seven-member committee, led by Deputy Prime Minister Ishaq Dar, has been tasked with reviewing the advance-to-deposit ratio (ADR) framework and building consensus with stakeholders.

Recommendations are expected by December 31, focusing on meeting revenue targets while encouraging private-sector lending. These measures could significantly impact banking profitability and market sentiment.

Despite recent volatility, analysts remain optimistic about the PSX’s trajectory. Strong macroeconomic fundamentals, easing inflation, and robust remittance inflows are expected to drive continued market momentum.

The KSE-100 Index had on Tuesday reached an intraday high of 111,759.58 before profit-taking, geopolitical tensions, and global equity sell-offs, triggered a plunge. The index had closed at 108,896.65, down 1,073.73 points.

The trading floor of the PSX (Pakistan Stock Exchange) buzzed with joy as the market shattered its all-time high today. KSE-100, the main benchmark of the stock market, closed at 84910 points, reporting a 1.62% rise in the index since trading began in the morning.

Each index on the PSX remained in the green, with the OGTI (Oil and Gas Tradable) index posting astronomical gains at an appreciation of 4.81% of the entire index in just one day.

The All Shares Index, which measures the performance of all the companies listed on the stock exchange, also received a boost of 968 points or 1.79%.

In addition, Pakistan’s KSE-30, which reflects the stock value of the thirty largest companies operating in the country, stood higher by 487 points and ended the market session with an overall appreciation of the index at 1.79%.

With growing investor confidence and the market sitting at the cusp of passing the 85,000-point mark, it seems inevitable that the wave of bullish investor sentiments will help to break a new record.

The rise in investor confidence was a welcome surprise following the disturbances caused by PTI protests and growing terror concerns following the attack against Chinese workers. If the sentiments remain bullish, then investors are expected to record massive gains.

The trading floor of the Pakistan Stock Exchange (PSX) buzzed with worried whispers today as traders witnessed a slump in the KSE-100. A drop of 177.93 points (or 0.22 per cent) in the Karachi Stock Exchange – KSE-100 – reflected the bearish sentiments gripping investors, causing them to prefer selling their shares over holding them.

Meanwhile, the secondary benchmark for the PSX, the All Share Index (ALLSHR), fared even worse. It dropped by 163.78 points, equivalent to an alarming 0.32 per cent drop.

What’s especially worrying is the dip in the KSE-30. This index, which monitors the performance of the shares of the largest and most traded companies, witnessed a decline of 0.13 per cent.

Moreover, the day spelt bad news for individuals who had invested in KMI30 (Meezan index), as it experienced a sharp plummet of 543.59 points, which translates into a 0.44 percent drop.

Local companies, such as PIA holding company B, saw a massive share value decrease of PKR 67.29, translating into an ugly 7.28 per cent decrease in share value. Some companies, such as Siemens Pak and Shell, however, stayed in the green.

Could this result in a diversion of investments from local to multinational companies?

What is certain, though, is that the drop in these indexes and the fall in prices of local companies reflect falling investor confidence in the local economy. This can safely be attributed to the recent political instability, with KPK’s Chief Minister Ali Amin Gandapur calling for a revolution and stating that they will adopt a “bullet for bullet” modus operandi.

If this bearish trend persists, the hysteria could spread overseas to foreign investors with vested interests in the PSX, thus triggering panic selling. This can be detrimental as, according to the PSX financial highlights, 14.49 per cent of all outstanding shares are currently held by foreign investors.

Companies will surely look towards the SBP (State Bank of Pakistan) to lower interest rates. The new rates would enable companies to raise capital by incurring debt instead of giving up equity to shareholders.

While this is a good answer to curbing the PSX’s decline by encouraging greater investment levels supported by borrowing, the question now arises: Will this be the answer for the SBP, too?

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed by 1.22 per cent or 970.20 points on Wednesday to close the day in green.

According to data from PSX, the KSE-100 index settled the trading session at 80,461.33 on second trading day of the week.

It appears to be a favourable day for the PSX, as the fresh gains have once again pushed the Pakistani stock market above the 80,000-mark.

Interestingly, the KSE-100 during trading witnessed the peak of 80,587.44, while the lowest level observed during the day was 79,798.75.

The current closing is about 662.68 points higher than the intraday low and -126.11 lower than the intraday high witnessed during Wednesday’s session.

It is worth noting that this gain comes after a break of one day as the PSX remained closed for trading due to Eid-Milad-un-Nabi on Tuesday.

According to PSX data portal, top gainers, in percentage terms, during the day included TRG (+10.01 per cent), MARI (+10.00 per cent), NCPL (+4.33 per cent), PSEL (+4.17 per cent), and PKGP (+4.11 per cent).

On the other hand, top decliners, in percentage terms, were INIL (-4.09 per cent), THALL (-3.86 per cent), PGLC (-3.85 per cent), CNERGY (-3.12 per cent), and ISL (-2.63 per cent).

On Monday, a fire incident caused a temporary halt in trading at the Pakistan Stock Exchange (PSX), yet the benchmark KSE-100 index continued its bullish run, closing at a new record high.

The index remained relatively stable during the first hour of trading but faced a suspension from 10:25 am to 12:30 pm due to a fire outbreak at the main building, which houses several brokerage offices.

Once trading resumed, the market quickly regained momentum. The KSE-100 index surged to an intra-day high of 80,737.71 points, adding 524.92 points. By the close of trading, the benchmark index settled at 80,566.21 points, marking an increase of 353.41 points or 0.44 per cent.

Key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies, saw significant buying activity. Prominent stocks such as OGDC, PPL, PSO, SHEL, HBL, and NBP ended the day in positive territory.

The PSX had already been on a bullish trend the previous week, driven by aggressive buying from both local and foreign investors, as well as institutional support. The KSE-100 index had gained 1,767.83 points on a week-on-week basis, crossing the 80,000 mark to close at 80,212.79 points.