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Market Overview: Positive Close Amid Volatility
The Pakistan Stock Exchange (PSX) managed to close in the green on Tuesday, overcoming a volatile trading session. The positive close was primarily driven by expectations of a third consecutive interest rate cut by the State Bank of Pakistan (SBP) in its upcoming Monetary Policy Committee meeting scheduled for September 12.
Ahsan Mehanti, an analyst at Arif Habib Corporation, attributed the market’s upward movement to upbeat data on Consumer Price Index (CPI)-based inflation, which stood at 9.6% for August. He also highlighted reports of the government’s plan for a strategic sale of blue-chip state-owned enterprises to foreign investors, further boosting market sentiment.
Market Performance Highlights
- Index Movement: The benchmark index experienced significant fluctuations, reaching an intraday high of 78,645 and a low of 78,251, before settling at 78,356.32 points, reflecting a gain of 73.02 points or 0.09% day-on-day.
- Key Contributors: The upward movement was primarily driven by gains in key stocks, including Millat Tractors Ltd, Mari Petroleum, United Bank Ltd, Oil and Gas Development Company Ltd, and HabibMetro Bank, collectively adding 96 points to the index.
Volume and Trading Activity
- Trading Volume: The trading volume decreased by 4.50% to 436.67 million shares.
- Traded Value: The traded value also dropped by 22.79% to Rs12.25 billion.
Top Traded Stocks
The stocks with the highest trading volumes were:
- Kohinoor Spinning Mills Ltd: 83.94 million shares
- Symmetry Group: 37.13 million shares
- Agha Steel Industries: 21.56 million shares
- Yousaf Weaving Mills: 19.79 million shares
- Flying Cement: 17.40 million shares
Gainers and Losers
Top Gainers in Absolute Terms:
- Nestle Pakistan: Up by Rs139.17
- Mari Petroleum: Up by Rs66.56
- Hallmark Company: Up by Rs44.69
- Millat Tractors: Up by Rs28.94
- Pakistan Services: Up by Rs20.55
Top Losers in Absolute Terms:
- Unilever Foods: Down by Rs163.50
- Khyber Textile Mills: Down by Rs67.38
- Pak Engineering: Down by Rs45.74
- Colgate-Palmolive: Down by Rs18.17
- Highnoon Lab: Down by Rs17.21
Foreign Investor Activity
Foreign investors largely stayed out of the trading arena, with net purchases amounting to a mere $0.000750 million.
Conclusion
The PSX’s positive close, despite a turbulent session, reflects optimism around the potential for further interest rate cuts and strategic economic initiatives. Market players will continue to watch for developments leading up to the SBP’s policy announcement on September 12.
