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Stock Market's KSE-100 Index Drops 313 Points Due to Late-session Selling, Undoing Initial Advances

Stock market in Pakistan demonstrates volatility on Friday, with KSE-100 Index swinging up and down...

Stock market in Pakistan saw mixed patterns on Friday, with the KSE-100 Index fluctuating between...
Stock market in Pakistan saw mixed patterns on Friday, with the KSE-100 Index fluctuating between positive and negative territory.

Stock Market's KSE-100 Index Drops 313 Points Due to Late-session Selling, Undoing Initial Advances

The Pakistan Stock Exchange Takes a Mixed Ride

Fridays trading at the Pakistan Stock Exchange (PSX) showcased a rollercoaster ride, as the KSE-100 Index fluctuated between gains and losses before ending the week lower by 313 points.

KSE-100 tiptoed through range-bound trading in the initial half, only to be propelled by strong buying in the latter hours, reaching an intra-day high of 120,506.18. However, selling took over in the final hours, erasing the intra-day gains and pushing the index into the negative territory.

The benchmark index closed at 119,649.14, a slight dip of 0.26%. Topline Securities attributed this lackluster activity to the absence of a trigger and investors preferring to stay on the sidelines ahead of the weekend, following the index's surge to close at an all-time high.

ENGROH, SYS, BAHL, UBL, and BAFL contributed positively to the index, cumulatively adding 271 points. Conversely, FFC, LUCK, MARI, OGDC, PSO, and EFERT negatively impacted the index, collectively subtracting 476 points.

Thursday saw a continued buying rally at the PSX, with the KSE-100 index climbing over 1% to reach an all-time high of 119,962. The rally came in response to the US-brokered ceasefire between Pakistan and India and the approval of a loan tranche for Pakistan from the International Monetary Fund (IMF).

April's trading at the PSX has been impacted by various factors, including geopolitical tensions with India, the approval of an IMF loan tranche, and the federal government's decision to decrease import duties and phase out additional customs duty and regulatory duty over the next four to five years.

The current account deficit remains a challenge for Pakistan's economy, though its impact on the April trading at the PSX was not directly mentioned. Additionally, Pakistan launched its first Sovereign Domestic Green Sukuk worth Rs30 billion, pushing the share of Shariah-compliant financing in the country's total domestic debt to 14%.

Pakistani rupee experienced a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market, and settling at 281.66. Volume on the all-share index dropped to 572.29 million shares from 698.96 million recorded in the previous close. At-Tahur Ltd led the volume with 44.63 million shares, followed by Cnergyico PK and Lotte Chemical.

Overall, the stock exchange in April 2025 has witnessed fluctuations due to factors such as geopolitical tensions, economic factors like IMF loan approvals, government policies on import duties, and the issuance of green Sukuk. However, the exact impact of each factor on the trading during this month is not fully clear from the available information.

  1. The fluctuating stock exchange in April 2025 could be attributed to the impact of geopolitical tensions between Pakistan and India, the approval of an IMF loan tranche, government policies on import duties, and the issuance of green Sukuk on investing decisions in the finance sector.
  2. Despite Friday's rollercoaster ride at the Pakistan Stock Exchange (PSX), with the KSE-100 Index ending the week lower, some businesses like ENGROH, SYS, BAHL, UBL, and BAFL witnessed positive gains, collectively adding points to the index.
  3. On the other hand, companies like FFC, LUCK, MARI, OGDC, PSO, and EFERT negatively impacted the index, subtracting points due to selling pressure in the final hours of trading.
  4. In the realm of trading, the stock-market saw a buying rally on Thursday, pushing the KSE-100 Index to an all-time high of 119,962, in response to the US-brokered ceasefire and IMF loan approval.
  5. Financial experts should closely watch the debt landscape of Pakistan, given the current account deficit challenge and the increasing share of Shariah-compliant financing in the country's total domestic debt, which recently reached 14% with the issuance of the first Sovereign Domestic Green Sukuk worth Rs30 billion.

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