The Pakistan Stock Exchange (PSX) closed lower on Wednesday, with the key KSE-100 index falling 310.21 points, or 0.32%, to settle at 95,546.45.
The market witnessed a day of volatility, with the index reaching a high of 96,711.33 and a low of 95,311.97 during the trading session.
The total volume of shares traded reached 565,381,751 shares, worth 24.75 billion rupees. Despite the strong open, the market struggled to maintain momentum throughout the day, resulting in a downward adjustment at the close.
This decline follows the previous day’s close at 95856.66, reflecting a slight downward movement. Investors appeared cautious, as limited trading activity in key sectors contributed to the overall decline in market performance.
Earlier, a broad buying spree was seen in key sectors including oil and gas exploration (E&P) companies, oil and gas marketing companies (OMCs), sugar and allied industries, technology and telecommunications, and banks.
On Tuesday, the main Kuwait Stock Exchange 100 index closed above the 95,000-point level for the first time, settling at 95,856.67, an increase of 861 points, or 0.91%.
Market analysts attribute the positive momentum and enhanced investor confidence to growing economic optimism and easing inflationary pressure that is expected to fall below 5% for November.
In a related development, Pakistan’s current account registered a surplus of $349 million in October 2024, marking the third consecutive month in positive territory, according to data released by the State Bank of Pakistan (SBP).
Cumulatively, the current account surplus for the first four months of FY25 (July-October) was $218 million, an improvement on the deficit of $1.53 billion in the same period last year.
Net foreign direct investment in Pakistan rose by 32.3% during the first four months of the current fiscal year (FY25), reaching $904.3 million.
The federal government has decided to approach the Supreme Court to quash the stay order issued by the Islamabad High Court (IHC). The order temporarily halted the collection of an additional 15% income tax from banks on excessive lending to the Ministry of Finance.
The PSX has been on a multi-week winning streak mainly supported by increasing investor confidence and improving economic indicators. Last week, the stock market rose 1.6%, closing at a record high of 94,763 points.
According to a recent report issued by BloombergPakistani stocks are expected to advance by more than a quarter by the end of next year 2025 as the country’s economy shows improvement under a loan program with the International Monetary Fund and a stable currency.
The benchmark KSE-100 index is expected to rise to 127,000 points by December 2025, or a 34% increase, from the 94,704 it closed last Friday, according to Topline Securities Ltd. In a report announced on November 16, Arif Habib Ltd. The index aims to reach 120,000 points, with gains of 27%.
“The stage is set for a potential market rerating with lower interest rates, a stable rupee, and improving macroeconomic indicators,” Arif Habib, a Karachi-based brokerage firm, commented in a report.