DAILY MARKET WRAP

Downward Trend Continues at PSX!

The Pakistan Stock Exchange (PSX) saw a downward trend again today as the KSE 100 index experienced a sharp decline. The session started on a positive note however, selling pressure soon took over. Analyst believe several factors contributed to this decline, including introduction of the "Tax Laws Amendment Bill, 2024" by the government.

Global markets showed a downward trend too. Crude oil prices depreciated with WTI crude oil price declining by 0.78% to $70.03. While Brent crude oil price was up by 0.04% to $73.42. (As at 3:49 PM PST, Source: Investing.com).

The KSE-100 index briefly touched the day’s high of 111,745.03 after gaining 674.73 pts. Despite gaining initially, the index failed to maintain its position eventually dropping to a low of 105,937.37 down by 5,132.92 pts during the session. Ultimately, the index closed at 106,274.98 down 4795.32 pts. Similarly, the KMI-30 index shed 8935.99 pts closing at 163,531.23, while the KSE All-Share index fell by 2684.19pts to close at 67,484.26.

Trading volumes up to 1.15 bn shares compared to 1.10 bn shares in the previous session. Worldcall Telecom Limited (WTL) led the volume chart with 177,64 mn shares traded, despite a 11.11% decline. Cnergyico PK Limited (CNERGY) dropped by 10.70%, while the K-Electric Limited (KEL) followed recording an 6.95% day low. The scrips had 177.64 mn shares and 68.34 mn and 81.90 shares traded, respectively.

Several sectors exerted downward pressure on the KSE-100 index, with notable declines seen in the Oil & Gas Exploration Companies sector (-1096.68 pts), Commercial Banks sector (-1049.68 pts) and Fertilizer sector (-479.50 pts). Key contributors to the index’s negative performance included Mari Petroleum Company Limited (MARI) which dragged it down by 570.15 pts, The Hub Power Company Limited (HUBC) contributing a 347.38 pts decline and United Bank Limited (UBL) down by 252.06 pts.

The Oil & Gas Exploration Companies sector lost 6.29% in its cumulative market capitalization. Mari Petroleum Company Limited (MARI -10.00%), Pakistan Oilfields Limited (POL -5.73%), Oil and Gas Development Company Limited (OGDC -4.34%) and Pak Petroleum Limited (PPL -3.82%), all closed negative.

Values as at 04:15