KARACHI: The Pakistan Stock Exchange (PSX) edged lower on Wednesday on a lack of positive trigger, dropping 93 points or -0.08 per cent, closing at 114,084 level.
The stock market experienced a mixed session, with the benchmark index fluctuating between a peak of +484 points and a low of -176 points. It ultimately closed at 114,084 points, reflecting a modest decline of 93 points.
“Investors are cautious over the law and order situation following the latest act of terrorism in Balochistan. However, interest remains in energy sector stocks due to the expected resolution of circular debt,” Muhammad Awais Ashraf, Director Research at AKD Securities, told HUM News English.
The positive movement was primarily fueled by MARI, BAHL, MLCF, PABC, and DGKC, which together contributed 147 points to the index. Conversely, FFC, OGDC, and ENGROH weighed on the market, pulling the index down by 188 points.
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The market performance was influenced by the ongoing IMF review, the Topline Securities note stated.
“The market sentiment was shaken by two key developments, a militant attack in Balochistan and the imposition of an off-the-grid levy on natural gas-based captive power plants,” Al Habib Capital Markets note said.
In the morning, the market was heading forward with positive points of 484. However, as soon as selling pressure strikes, the market closed down at the 114,084.53 level.
In a significant development for the Pakistan banking sector, global rating agency Moody’s has upgraded the country’s banking outlook from stable to positive. Given the optimism surrounding ongoing negotiations with the IMF and a marginal appreciation of 0.04% in the rupee against the US dollar provided some support, the note added.
“The uncertainty surrounding further developments in the IMF review kept the market participants in a wait and see mode,” Ismail Iqbal Securities stated.
The overall market activity saw a total of 298 million shares traded, resulting in a turnover of Rs20 million. SSGC led the volume charts with 18 million shares exchanged.