After the sharp decline in the previous day, the Pakistan Stock Exchange witnessed a balance in the market on Tuesday, where institutional buyers bet on the best shares available at cheap prices. The KSE 100 index closed at 162,896.68 points after increasing by 1,091.66 points or 0.67 percent. According to reliable market sources, the stability in the value of the dollar and positive discussions with international financial institutions reactivated investors.
According to details, trading on Tuesday began at 163,033.72 points, which was better than the previous closing index. The market witnessed high volatility during the session, mainly due to profit-taking by short-term traders. The index touched a daily high of 164,309.65 points, while the lowest was recorded at 162,563.58 points. Analysts believe that the market’s holding above the psychological level of 162,500 is technically significant and indicates that there is still strong support at the bottom.
The overall constituent volume of the index companies was recorded at 169.98 million shares. Although this volume is slightly lower than the average volume of the previous weeks, the market closing in the positive zone is an argument that the selling pressure is now ending. According to macroeconomic data, the stock market has earned a positive profit of 29.67 percent so far in the current fiscal year (FYTD), however, on the other hand, the market is still running in a loss of 6.41 percent on a calendar year (CYTD) basis. The main reason for this loss is said to be global supply chain disruptions and high inflation rates.
Commercial banking and energy sectors played a major role in strengthening the positive trend of the market. United Bank Limited (UBL) performed brilliantly, adding the highest 288.01 points to the index. Bank Al Habib (BAHL) added 152.69 points and Oil and Gas Development Company (OGDC) added 142.76 points. Fauji Fertilizer Company (FFC) and Pakistan Petroleum Limited (PPL) broke the clouds of the recession by contributing 140.83 and 102.04 points respectively.
On the other hand, some major corporate groups saw selling, which limited the index’s gains. The index lost 105.07 points due to the decline in shares of Engro Holdings (ENGROH). Similarly, Meezan Bank (MEBL) with a loss of 20.77 points, Cherat Cement with a loss of 17.74 points, Fatima Fertilizer with a loss of 17.73 points and Mari Petroleum (MARI) with a loss of 17.71 points proved to be the major drags on the market. According to financial experts, for a sustainable boom, it is necessary for the government to announce incentives for the industrial sector in the upcoming budget to increase corporate profits.