Pak-Iran Tension: The KSE 100 Index Declined on Weekly Basis

Staff Report

The KSE 100 Index declined by –2.1 % week on week (WoW basis), attributed to the Pakistan-Iran conflict where both countries carried out missile attacks on ‘militants’ operating in each other’s territory

According to the Topline Weekly Review, Investors preferred to remain on the sidelines before the upcoming election. Pakistan Stock Closed on a Negative Nod after Bleeding

Investor participation declined during the outgoing week, with the average traded volume and value standing at 389 million shares (down by 31% WoW) and Rs. 13.77 billion (down by 31% WoW), respectively.

Major developments during the week included the Current Account posting a surplus of $397 million in Dec 2023, a PIB fixed income auction where the government raised 158 billion, and FDI clocking in at $211 million (up by 61% MoM) in Dec 2023.

There was also confirmation by UAE to roll over a $2 billion deposit for one year, and an announcement by PSX that the voluntary delisting committee determined a minimum purchase price of Rs 609/share for PSMC delisting, accepted by PSMC as they sent a notice to the exchange confirming the same.

The KSE 100 Index opened on a positive note, reaching an intraday high of 710 points. The optimism in the first half of the trading session can be attributed to the easing tension between Pakistan and Iran.

However, investors chose to secure their intraday gains amid uncertainty due to the upcoming election. As a result, the index declined during the second half, closing at the 63,282 level (up by 0.13%).

The major positive contribution to the index came from ENGRO, MARI, FFC, MTL, and DAWH, cumulatively adding 119 points.

On the flip side, BAHL, SNGP, SRVI, PTC, and NRL lost value, weighing down the index by -60 points. KEL was today’s volume leader with approximately 50 million shares.