Despite gains in the banking sector and positive economic developments, the Pakistan Stock Exchange (PSX) ended the volatile session with a close that was almost flat, with a gain of just 5.30 points.
The State Bank of Pakistan’s (SBP) revision to the small and medium-sized enterprise (SME) exposure limit and high remittances of $2.8 billion for September contributed to the day’s positive start. By afternoon, those factors had pushed the KSE-100 index to its intraday high of 86,451.42 points.
However, profit-taking caused the index to fall from its peak, making it difficult to maintain above 86,000. Consequently, toward the end of trading, the KSE-100 touched its intraday low of 85,444.30 points.
Stabilization of the market was helped by easing political tensions and speculation regarding corporate earnings, despite mid-session pressure from falling global oil prices and outflows of foreign funds. With minimal gains, the bourse ended below the 86,000 mark. “After the SBP revised per party exposure limit for SMEs and reports of $2.8 billion in remittances for September 2024,” stated Ahsan Mehanti, Managing Director of Arif Habib Corp. “Mid-session pressure emerged due to falling global crude oil prices and foreign outflows.” Stocks closed at a new all-time high, led by banking shares. However, a positive close at the PSX was caused by less political noise and earnings season speculation.”
The KSE-100 index closed at 85,669.28 at the end of trading with modest gains of 5.30 points, or 0.01%.
The trading session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking and the index’s inability to maintain levels above 86,000, according to Topline Securities’ commentary. “The buying activity of local institutions primarily supported the market,” it stated. The MCB Bank, Lucky Core Industries, Bank AL Habib, Hub Power, and Habib Bank all contributed 292 points to the index.
