The Pakistan Stock Exchange (PSX) witnessed a day of rumors and unconfirmed reports, resulting in volatility, particularly for index-heavy Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) stocks. The benchmark KSE-100 Index saw a significant decline of over 500 points on Thursday, settling at the 64,298.00 level, marking a decrease of 524.43 points or 0.81%.
Earlier in the session, the KSE-100 reached an intra-day high of 65,213.61, fueled by reports concerning the circular debt management plan, which had been a focal point for investors in recent weeks. However, selling pressure intensified in OGDC and PPL, accompanied by profit-taking in other sectors, eroding the gains made over previous sessions.
Caretaker Prime Minister Anwaar-ul-Haq Kakar directed the Ministry of Energy to develop a comprehensive plan, in consultation with the Finance Ministry, aimed at reducing the circular debt plaguing the power and gas sectors. This directive came during a review meeting addressing strategies to mitigate circular debt in the energy sector.
Additionally, anticipation of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting surged following a surprising decline in the cut-off yield on short-term government securities during Wednesday’s auction. However, analysts remain cautious, predicting a status quo in the MPC meeting amid concerns over delays in implementing the circular debt plan and the need for International Monetary Fund (IMF) approval.
Global market trends also influenced investor sentiment, with Shanghai and Hong Kong stocks extending their rally, while Wall Street’s S&P 500 reached another record close. However, fluctuating market dynamics persisted across Asia as traders awaited further stimulus pledges from Chinese officials.
In the inter-bank market, the rupee maintained stability against the US dollar, closing at 279.67, as reported by the State Bank of Pakistan. Despite a decrease in volume on the all-share index, the value of shares traded increased, reflecting ongoing market activity.
Oil & Gas Development emerged as the volume leader, followed by K-Electric Ltd and Hascol Petroleum. Of the 353 companies traded, 102 witnessed gains, 233 recorded losses, while 18 remained unchanged, underscoring the mixed sentiment prevailing in the market.
