KARACHI:As the year drew to a close, Pakistan’s stock market ended slightly under pressure on Tuesday, primarily due to institutional profit-taking in overbought stocks.
The KSE-100 index declined by 132 points, closing at 115,127. Analysts attributed this modest drop to several factors, including a global equity downturn, Pakistan’s sluggish economic growth of 0.92% for the July-September 2024 period, security concerns in Karachi, and foreign fund outflows.
Despite the year-end dip, the Pakistan Stock Exchange (PSX) showcased an exceptional performance in 2024, achieving an 84% growth rate. Over the past 18 months, the market soared by 178%, marking the most robust performance in its history.
Ahsan Mehanti of Arif Habib Corporation noted that institutional profit-taking led to the market’s decline. He highlighted additional pressures such as the global equity slump, Karachi’s security challenges, and the weak economic growth rate as contributing factors.
By the end of the trading session, the benchmark KSE-100 index had dropped by 132.09 points (0.11%) to close at 115,126.90.
In its year-end analysis, Topline Securities commended the PSX for its strong rebound in 2024 after years of underwhelming performance. The market’s 84% annual growth positioned it as the second-best performing stock market globally. This was also the highest return in 22 years, second only to a 112% return in 2002.
Over the last 18 months, the PSX’s 178% growth made it the top-performing market worldwide, according to Bloomberg data. This surge represented the strongest market performance in Pakistan’s 77-year history.
Arif Habib Limited (AHL) also observed that year-end selling pressure kept the KSE-100 index below its recent highs on Tuesday.
The day’s trading saw 49 stocks gain, 50 decline, and major contributions to the index came from Pakistan Petroleum (+2.3%), UBL (+1.03%), and HBL (+1.7%). Conversely, Fauji Fertilizer Company (-1.51%), MCB Bank (-2.1%), and Bank Alfalah (-2.1%) acted as the largest drags.
Media reports indicated that the government approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia for $540 million. The payment will be made in two phases, with $330 million in the first and $210 million in the second. The federal government’s stake in Reko Diq is managed through Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited, each holding an 8.33% share.
According to AHL, if the sale is finalized, OGDC and PPL are expected to register investment gains of Rs2.56 and Rs4.12 per share, respectively.
In US dollar terms, the KSE-100 index gained 88% over the year, ranking it as the second-best performing market globally, AHL added.
Trading volumes increased significantly to 1.24 billion shares compared to Monday’s 1.06 billion.
A total of 465 companies were traded during the day, with 235 closing higher, 188 lower, and 42 remaining unchanged.
Cnergyico PK led the trading volumes with 213.4 million shares, rising by Rs0.41 to close at Rs7.85. It was followed by Pace Pakistan, which traded 66.2 million shares and gained Rs0.76 to close at Rs8.09, and WorldCall Telecom, which saw 65.8 million shares traded, losing Rs0.05 to close at Rs1.78.
Foreign investors purchased shares worth Rs585.9 million during the session, as reported by the National Clearing Company of Pakistan.
