After a mid-week crash, the Karachi stock market staged a partial recovery. Renewed buying interest helped the market, but the week closed in the negative. The KSE-100 index ended at 109,513 points, posting a 4.19% decline with a loss of 4,789 points.
The week started positively as investors anticipated a policy rate cut by the State Bank of Pakistan (SBP). The SBP announced a 200 basis points reduction, bringing the rate to 13%, down from June’s 22% peak. However, the cut fell short of market expectations. Trade and industry players had hoped for a 500-700 basis points cut to revive borrowing and economic activity, as inflation hit a 78-month low of 4.9% in November.
Steep Mid-Week Losses
The market saw intense selling pressure mid-week. On Tuesday, the index lost 1,308 points as investors booked profits. This was followed by historic single-day point-wise declines of 3,800 points on Wednesday and 4,800 points on Thursday. Institutional investors’ year-end profit-taking and mutual fund redemptions drove the losses.
Despite a record $729 million current account surplus in November, the market remained under pressure. Rising political noise and U.S. sanctions on four Pakistani companies linked to the missile program added to investor anxiety. The upcoming Trump administration further fueled nervous selling.
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Sector-Wise Performance
Key sectors posted significant losses. Oil and gas exploration shed 1,305 points, fertilizers 1,119 points, and cement 798 points. Commercial banks and technology contributed 446 and 252 points to the decline, respectively.
On the positive side, oil marketing companies (OMCs) added 113 points, cable and electrical goods 72 points, and power 57 points.
Scrip-Wise Movers
Mari Petroleum led the losses, shedding 966 points. Lucky Cement lost 430 points, Fauji Fertilizer 324 points, and Pakistan Petroleum 585 points. On the other hand, PSO added 229 points, Hub Power 166 points, and Indus Motor 90 points.
Foreign and Local Investors
Foreign investors continued selling, offloading $11.6 million compared to $0.9 million last week. The largest foreign sell-offs were in exploration and production ($5.5 million) and banking sectors ($4.3 million).
Local investors stepped in, with individuals buying $25.8 million worth of shares, followed by banks and development finance institutions (DFIs) at $10.5 million.
The average trading volume fell by 19.1% to 1.192 billion shares. However, the average traded value rose 10.2% to $218 million. The rupee depreciated slightly, losing 0.08% to close at Rs278.42 against the dollar.
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