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Pakistan Stock Exchange (PSX) Recovers After Initial Decline

**Pakistan Stock Exchange (PSX)** witnessed a decline of 881.2 points due to political uncertainty in the country. However, the market stabilized and closed with a loss of 124.26 points (-0.19 percent), with the benchmark KSE-100 Index closing at 64,514.89 points.

The market started positively but remained range-bound during the first half of Friday’s session. However, the news of the Senate approving a resolution seeking a delay in the general elections negatively impacted investor sentiment, causing the benchmark index to lose nearly 900 points in the second half of trading. Despite this, most political parties and the caretaker government expressed their displeasure over the resolution, ensuring that the elections would be held on time. As a result, the index recovered most of its losses but still closed in the red.

The resolution seeking a delay in the general elections was put forward by Senator Dilawar Khan, who cited cold weather and security issues as the primary reasons. This development, just over a month before the scheduled February 8 elections, has raised concerns about the growing political instability in the country, which is already facing various challenges.

During the trading session, the benchmark index fluctuated between an intraday high of 65,077.47 points and an intraday low of 63,757.95 points, a range of 1,319.52 points. The KSE All Share Index gained 57.74 points (+0.13 percent) to close at 43,366.59 points, while the KMI All Share Islamic Index gained 113.15 points (+0.36 percent) and closed at 31,819.48 points. The trading volume for the KSE-100 Index increased to 718.03 million shares, up from 322.74 million shares in the previous session. The overall market volume also rose to 949.56 million shares from 548.99 million shares traded earlier.

Among the top traded scrips, K-Electric (KEL) recorded the highest volume with 481.12 million shares (around 51 percent of total traded volumes), followed by Worldcall Telecom Limited (WTL) with 33.38 million shares and Bank of Punjab (BOP) with 28.42 million shares. The major volume-contributing stocks included KEL, WTL, BOP, CENERGY, and Pakistan Telecommunication Company Limited (PTC), accounting for approximately 63 percent of the total volumes.

A total of 361 companies traded shares in the stock exchange, with 160 closing higher, 187 closing lower, and 14 remaining unchanged. Out of the 96 companies in the KSE-100 Index, 41 saw an increase in share prices, 53 saw a decrease, and 2 remained unchanged. The total number of trades increased to 229,927 from 196,656 in the previous session, with the value of shares traded rising by Rs3.96 billion to Rs19.36 against Rs15.40 billion earlier.

In terms of rupee, NESTLE emerged as the top gainer, with a price increase of Rs200 (+2.44 percent) per share, closing at Rs8,400. The runner-up was Sui Northern Gas Pipelines Limited (SFL), with a share price increase of Rs110 (+6.51 percent) to Rs1,800. On the other hand, Universal Insurance Company Limited (UPFL) recorded the largest decrease of Rs150 (-0.67 percent) per share, closing at Rs22,100. Pakistan State Oil (PSEL) saw its share price decline by Rs54.9 (-5.44 percent) to close at Rs955.1 per share. The major sectors that contributed to the index’s decline were fertilizer, miscellaneous, oil & gas exploration companies, technology & communication, cement, tobacco, refinery, commercial banks, engineering, and automobile assembler.

ENGRO, PSEL, Fauji Fertilizer Company (FFC), and Hub Power Company (HUBC) were among the ten major companies that negatively impacted the index. On the other hand, Pakistan Suzuki Motor Company (PSMC), KEL, Service Industries Limited (SRVI), and The Searle Company Limited (SEARL) were among the ten companies that contributed positively to the index.

In summary, despite the initial decline, the Pakistan Stock Exchange showed resilience and recovered from its losses. The market is expected to remain stable as political parties and the caretaker government have reaffirmed their commitment to holding timely elections.