The Pakistan Stock Exchange (PSX)showcased a volatile trading session on Thursday, as the benchmark KSE-100 Index swung between gains and losses before closing with a slight rise of 111 points.
The market opened on a positive note, with the KSE-100 Index hitting an intra-day high of 118,367.81. However, selling in the latter half of the session dragged the index to an intra-day low of 116,857.61. At the close, the benchmark settled at 117,119.65, reflecting an increase of 111.57 points or 0.1%.
Analysts attributed the early buying momentum to improved macroeconomic indicators, particularly a decline in inflation. Pakistan’s Consumer Price Index (CPI) for December 2024 clocked in at 4.1%, the lowest since April 2018, according to Pakistan Bureau of Statistics (PBS) data. This reading, down from November’s 4.9%, bolstered investor optimism for further policy rate cuts.
“CPI for December came in at an encouraging 4.1%, as macroeconomic stabilization under IMF directives continues to take root,” said Intermarket Securities in a note. “Equities, especially cyclicals, remain an attractive vehicle for investment as the lagged impact of interest rate cuts drives consumption and industrial output improvements.”
Sector-wise, buying was observed in index-heavy banking stocks, including HBL, JSBL, and MEBL, which traded in the green. Conversely, selling pressure hit energy stocks, with HUBCO, PSO, SNGPL, POL, OGDC, MARI, and PPL closing in the red.
