The short trading week on the Pakistan Stock Exchange ended with an overall bearish trend. The benchmark KSE 100 index fell by 1,325 points on a weekly basis and closed at 180,104 points. This is a decline of about 0.73%.
The market witnessed significant volatility during the week. The index reached a high of 182,347 points. On the other hand, the low was 179,778 points. Thus, the index traded in the range of 2,568 points during the week.
Despite the downturn, business activity in the market did not weaken. A total of about 3.41 billion shares were traded. The value of these deals was about Rs 152 billion.
The total market capitalization of the Pakistan Stock Exchange also decreased at the end of the week. It decreased by Rs 107 billion to Rs 20.13 trillion.
Global and regional factors had a significant impact on the weekly direction of the market. Investors are keeping an eye on the possibility of a reduction in tensions between the United States and Iran. Uncertainty regarding the Strait of Hormuz also remained an important factor for the market.
The increase in global crude oil prices also caused concern for investors. According to market analysts, the price of Brent crude oil rose above $ 90 per barrel during the week. Later, the price returned to the level of about $ 86.
Oil prices are of particular importance for Pakistan’s economy. The increase in imported energy may increase pressure on external payments. This may also have an impact on rupee and inflation concerns.
The market trend during the week was not completely one-sided. The KSE 100 index closed marginally lower on Monday. On Tuesday, selling pressure increased and the index fell significantly. The market showed some recovery on Wednesday. However, pressure was seen again in the subsequent sessions.
The latest weekly data also shows that investors’ interest in the market remains intact. Despite the heavy trading volume, the decline in the index indicates that cautious attitude prevailed over buying.
Investors will now focus on the global geopolitical situation, crude oil prices and domestic economic indicators. Financial results of companies and new domestic economic developments can also influence the direction of the market.
Overall, the KSE 100 index is still around 180 thousand points. However, the performance of the recent week suggests that the market is facing a cautious environment due to external risks.
