Investors remained cautious on the last trading day of the week at the Pakistan Stock Exchange, due to which the KSE-100 index recorded a significant decline. The market closed down 1,778.46 points, or 1.03 per cent, at 171,115.82 points.
The market witnessed limited buying at the start of the trading session, and the index touched a high of 172,287.46 points; however, the market continued to decline as selling pressure increased in the second half of the session. The index also touched a low of 170,393.12 points at one point.
Market data showed that investors were particularly cautious in the banking and energy sectors. Large stocks like UBL, ENGRO, MEBL, PPL and MARI had a significant negative impact on the index. UBL alone contributed 198.42 points to the decline, while ENGRO contributed 188.52 points.
According to analysts, global economic concerns, volatility in crude oil prices, and uncertainty regarding domestic monetary policy are affecting market sentiment. Investors are preferring to lock in profits rather than make fresh investments.
On the contrary, positive activity was also seen in a few selected companies. KEL contributed 19.26 points, while PIOC, MTL, JVDC and HINOON also tried to support the index, but overall market pressure proved stronger.
The trading volume was recorded at 431.76 million shares, indicating a reasonable level of activity in the market. Although trading volume remained good, investors’ focus largely seemed to shift towards safe sectors.
The KSE-100 index has maintained a positive return of 36.21 per cent since the beginning of the financial year, reflecting the strong performance of the market in the past months. However, on a calendar-year basis, the index has entered the negative zone by 1.69 per cent, highlighting the uncertainty of the current year.
Market experts say that the developments related to economic data, interest rates, foreign exchange reserves and budget will influence investors’ decisions next week. If the government’s economic policies stabilise, there may be chances of recovery in the market.