The Pakistan Stock Exchange managed to make some progress in a range-bound session on Tuesday, as investors chose to enter new positions at appealing values after the previous trading day’s “bloodbath.”
After bouncing throughout the day, the benchmark KSE-100 index climbed roughly 111 points to settle in the green zone.
However, the rupee’s ongoing depreciation against the US dollar restricted advances at the exchange, as it continued to plague the overall trading environment.
The rupee hit an all-time low against the dollar in the interbank market on Tuesday, falling to Rs188.66.
Furthermore, the country’s volatile political and economic circumstances kept stock trading sluggish as skeptics anticipated encouraging indications.
Earlier, the session began on a good note, with the benchmark index reaching an intra-day high of 43,647 points after bouncing in a tight range. The rise was fueled mostly by investors looking for bargains.
However, the index began to lose luster and sank to an intra-day low of 43,263 points by lunchtime, as market players began to consider the effect of the plummeting rupee.
Late-session purchasing helped the index regain its losses and close in the positive zone.
At the closing, the benchmark KSE-100 index was up 111.22 points, or 0.26 percent, to 43,504.36 points.
According to Topline Securities, Pakistan’s stocks saw a mixed day on Tuesday following a selling frenzy the previous session.
The market began on a bearish note, reaching an intraday low of 131 points.
“At the aforementioned level, value hunting took hold, allowing the benchmark index to reach an intra-day high of 254 points before settling at 43,504 points,” Topline stated.
TRG Pakistan, Colgate-Palmolive (Pakistan) Limited, Engro Corporation Limited, Pakistan Oilfields Limited, and Hub Power Company all contributed positively to the index, with TRG Pakistan, Colgate-Palmolive (Pakistan) Limited, Engro Corporation Limited, Pakistan Oilfields Limited, and Hub Power Company each adding 120 points.
Systems Limited, United Bank Limited, and Millat Tractors, on the other hand, saw profit-taking, losing 49 points altogether.
According to Arif Habib Limited, the market had a range-bound day, as the Pakistan Stock Exchange started on a bullish note but remained volatile owing to the rupee’s continued decline against the US dollar amid political and economic uncertainties that kept investors at bay.
Throughout the day, the market remained dull. “The main board remained dry, although heavy volumes were witnessed in third-tier stocks,” it stated.
Fertiliser (+40.7 points), technology (+27.6 points), oil marketing businesses (+12.7 points), and electricity (+10.8 points) all contributed to the performance.
On Tuesday, the market saw range-bound action, according to JS Global analyst Mohammad Waqar Iqbal. The KSE-100 index finished at 43,504, up 111 points from the previous day.
The volume leaders were Cnergyico PK (+2.3 percent), Pakistan Refinery Limited (+0.1 percent), Pakistan International Bulk Terminal (+2 percent), Lotte Chemical Pakistan Limited (-0.9 percent), and Telecard Limited (-0.9 percent).
“We anticipate range-bound activity to continue in the future and advise investors to use any drop as a chance to purchase in the cement and textile sectors for short-term trades,” the analyst added.
Overall trading volume fell to 233.9 million shares, down from 305.2 million on Monday. The total value of shares exchanged that day was Rs6.9 billion.
Shares of 337 different firms were traded. At the conclusion of the day, 151 stocks were higher, 163 were down, and 23 were unchanged.
With 19.1 million shares traded, Cnergyico PK gained Rs0.13 to settle at Rs5.69. Pakistan Refinery Limited came in second with 13.9 million shares, earning Rs0.01 to end at Rs15.01, while Pakistan International Bulk Terminal came in third with 13.2 million shares, gaining Rs0.12 to close at Rs6.15.
According to statistics gathered by the National Clearing Company of Pakistan, foreign institutional investors sold Rs218.8 million worth of shares during the trading session.