Hope of IMF programme revival propels KSE-100 Index by 875 points

It is said that the Pakistan Stock Exchange is “unpredictable” – a notion that was proved yet again the KSE-100 Index, out of nowhere, gained 467.19 points or 1.19 percent on Thursday, the penultimate session of the calendar year.

Trading started from the previous day’s value of 39,279.43 and closed with the benchmark KSE-100 Index surging to 39,747.35 with a total trading volume of 166,553,791 (166.55 million) shares.

According to Ali Nadeem of National First Equity Limited (NFEL), the positive results on Thursday are product of portfolio balancing by institutions and investors.

When asked about the unpredictable nature of the Pakistan Stock Exchange (PSX), he said the local market lacked depth with only 0.1 percent of the total population having accounts in the market. The percentage in the world’s developed countries ranged between 5 to 15 percent, he added.  

During the current calendar year, the index has plunged by 10.87 percent – a trend witnessed around the globe. The biggest example is the New York – the world’s economic capital – where the Nasdaq has witnessed a loss of 34.7 percent followed by S&P 500 20.6 percent and the Dow 9.5 percent by Wednesday with two more session to come.

However, any selling pressure is nothing unique as it is the last week of not only the month but also of the year – commonly known as rollover week.

The rollover week – also the last settlement week of the calendar year 2022 – means future contracts are to be settled or rolled over, with the investors’ anxiety and uncertainty stemming from the nail-biting process to see if the task is successfully accomplished. Investors – primarily mutual funds, brokers and companies liquidate – their leveraged positions to close their financial books by the June closing.

On Thursday, the benchmark index witnessed trading of 91 companies’ shares of which 65 registered an increase, 24 recorded a fall while two remained unchanged.

The total volume of the KSE-100 index stood at 166.55 million shares – an increase of 1.63 percent against 163.84 million shares traded on Wednesday.

As far as the volume leaders on the KSE-100 Index are concerned, Bank Alfalah and K-Electric again occupied the top two spots with the trading of 52.19 million and 20.11 million shares respectively. They were followed by Cnergyico PK 13.11 million shares, The Bank of Punjab 7.77 million shares and Pakistan Petroleum 6.61 million shares.

On the other hand, the five companies with the largest gains were: Habib Bank Growth Fund 8.48 percent, Rafhan Maize Products 7.50 percent, Pak Suzuki Motors 7.17 percent, Nestle 6.76 percent and Honda Atlas 6.79 percent.

When it comes to the shares that suffered the biggest losses, Nishat Chunian Limited – the textile unit which reduced production by shutting down one-fourth of its spindles, had another 4.50 percent decline in its share price.

The reduction in the case of Pakistan Tobacco was 4.24 percent, Yousaf Weaving Mills 4.18 percent [after a 4.27 percent loss a day earlier], Habib Bank 3.28 percent and Cnergyico PK 2.16.


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