PSX weekly roundup: banking, E&P sectors boost stock market gains

KARACHI: Pakistan Stock Exchange (PSX) continued its impressive upward trajectory this week, driven primarily by gains in the banking and exploration sectors, Mettis Global reported.

The benchmark KSE-100 index gained 1,951 points, or 2.3 per cent, through the week, closing at 85,483 points. This increase was reflected in both local and foreign currencies.

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Notable contributions to growth came from banking, exploration, marketing, fertilisers, and pharmaceuticals sectors. On the other hand, power, cement, auto parts, textile, and insurance sectors brought downward pressures. The power sector, in particular, showed decline due to the government’s decision to terminate contracts with five independent power producers (IPPs).

Moreover, a major power producer announced its intention to enter into a settlement agreement to accelerate the closure of its 1,292 MW plant, which was initially set to shut down in 2027 but will now close in October 2024.

On the international front, foreign investors remained net sellers for the sixth consecutive week, offloading $22.63 million worth of shares. This sell-off was largely driven by Pakistan’s demotion from the Secondary Emerging to Frontier Market category during a recent global index rebalancing. Mutual funds, however, continued to absorb much of this selling pressure, especially in the exploration sector.

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According to market research, the October-December period has historically been the strongest for the stock market, with an average rise of 6.6 per cent during the last quarter since 1992, Mettis Global said.

Throughout the outgoing week, the KSE-100 Index fluctuated within a 3,148-point range, reaching a peak of 86,451 points (up 2,919) and a low of 83,304 points (down 228).