On December 13, 2024, the Pakistan Stock Exchange (PSX) experienced a significant downturn, with the KSE-100 index dropping by 1,216.86 points, closing at 112,963.64 points. The market briefly surpassed the 115,000-point barrier during intra-day trading, peaking at 115,172.44 points before dipping to a low of 112,946.48 points.
Market Activity and Trading Volume
The market saw 260 million shares traded, with a total value of 23.34 billion rupees. The previous close was at 114,180.50 points, marking a sharp contrast to the record-high surge seen the day before, when the index gained 3,370.29 points or 3.04%, closing at 114,180.51 points.
Factors Influencing Market Trends
The recent surge in the stock market was driven by optimism over potential policy easing by the State Bank of Pakistan (SBP), particularly after the 100-basis point reduction in government bond yields. Positive macroeconomic indicators such as rising global oil prices, a 15% increase in petroleum sales, and growth in car and cement sales further fueled investor sentiment.
Stock Performance
Fertiliser, exploration, and technology stocks led the rally, with significant gains seen in Fauji Fertiliser, Mari Petroleum, and Pakistan Petroleum. However, stocks like Meezan Bank and Cherat Cement saw losses. Foreign investors sold shares worth Rs 1.18 billion, despite overall positive momentum.
Market Outlook
Analysts remain optimistic about the market’s long-term outlook, with the PSX up 185% over the past 18 months. This growth is expected to continue, bolstered by improving economic conditions and rising investor confidence.
