The KSE100 index initially crossed the 71,000 level today, gaining over 540 points. However, intense selling pressure from banks/DFIs and brokers' proprietary trading activity forced the index to close in the red, losing 61 points.
Foreign corporates have continued their strong engagement with the Pakistan Stock Exchange (PSX) and were net buyers of over $3 million today. This buying streak extends to every trading day this month, with foreign corporates accumulating a net buy of over $14.7 million so far this month. This represents over 65% of their total net purchases for the year to date.
Sectors with heavy weightage in the index, such as oil, power, and fertilizer, came under pressure today. These sectors were the recent leaders in terms of gains. Notably, within the oil sector, OGDC rose today. However, it's important to remember that its rally is recent, and OGDC is still trading down 16% from its high of about two months ago.
In short, the Pakistan Stock Exchange is in a bullish trend despite political and economic issues making headlines.
The visit of the Saudi Foreign Minister and expected talks with the IMF for a broader program are creating a sense of economic recovery and investment flow.
Inflation remains high and rise in international oil prices is pressuring Pakistan’s forex reserves, with consequential impact on the exchange rate. This environment had forced the State Bank of Pakistan to keep the policy rate at an elevated level. The continuation of this environment is pressuring expectations of a rate cut in the next meeting.
Also see the following short notes on announcement of companies in our broader PSX Investment Universe.
MLCF: Maple Leaf Cement Factory Limited just finished buying back some of its own shares
NESTLE: Nestle Pakistan Limited Presentation for Corporate Briefing Session - 2024
