KSE-100 Ends 2023 on a High Note: Closes at 62,451 with a 0.64% Gain

Karobar Karobar
Dec 29, 2023 - 20:09 Updated: Dec 29, 2023 - 20:10
0
KSE-100 Ends 2023 on a High Note: Closes at 62,451 with a 0.64% Gain

Bulls steered the Pakistan Stock Exchange (PSX) to a robust closure for the year 2023, with the benchmark KSE-100 Index finishing the last trading session in positive territory.

Closing at 62,451.04, the index saw a noteworthy increase of 398.81 points or 0.64%, navigating through fluctuations during the session.

A diverse trend marked the day, with sectors like automobile assemblers, cement, oil and gas exploration, and OMCs showcasing gains, while commercial banks and the refinery sector ended in the red.

Thursday witnessed a buying surge, propelling the benchmark index by almost 2% to settle at 62,052.23, a rise of 1,188.61 points or 1.95%. However, Friday introduced some volatility, starting with gains in the first half and encountering selling pressure post the break.

In the final hour, a buying spree ensured that the KSE-100, having registered a remarkable 55% gain in 2023, concluded the year on a high note.

Investors engaged in value hunting on the final trading day of the year, with positive sentiment fueled by a significant surge in the country's foreign exchange reserves.

The State Bank of Pakistan reported an $850 million increase in foreign exchange reserves for the week ending December 22, 2023. Mohammed Sohail, CEO of Topline Securities, remarked that many market participants were not expecting this boost before the anticipated International Monetary Fund (IMF) tranche next month.

Sohail added, "This will not only help stabilize PKR but will also help in achieving December-end IMF targets."

In 2023, the KSE-100 index posted a substantial gain of nearly 55% (USD return of almost 24%). Notably, all these gains occurred in the second half of the year when the IMF approved a short-term program to support Pakistan.

Despite the recovery, the Pakistan market maintains a very low price-to-earning (PE) ratio of 3.4x, according to Sohail. Looking ahead to 2024, he emphasized that upcoming elections and a new long-term IMF program to manage external financing needs will be key market drivers.

Globally, Asian stocks paused on the last trading day of the year, poised to end a two-year losing streak, buoyed by expectations that the Federal Reserve will commence interest rate cuts next year.

Meanwhile, the Pakistani rupee sustained its momentum against the US dollar for the 13th consecutive session, appreciating 0.02% in the inter-bank market on Friday.

Trading volume on the all-share index increased to 590.6 million from the previous session's 676.2 million, while the value of shares declined to Rs16.8 billion from Rs20.2 billion in the previous session.

K-Electric Ltd led the volume with 141.8 million shares, followed by Fauji Foods Ltd with 28.3 million shares, and WorldCall Telecom at 27.9 million shares.

Shares of 359 companies were traded on Friday, with 207 recording an increase, 130 experiencing a decline, and 22 remaining unchanged.