PSX witnesses mixed session on World Bank’s GDP growth forecast of 2%

KARACHI: A mixed session was witnessed at the Pakistan Stock Exchange (PSX) on Wednesday after the World Bank lowered the GDP growth forecast to 2 per cent in FY23.

The benchmark KSE-100 Index closed at 40,758.20 points, down 43.30 points, or 0.11 per cent. The volumes decreased from 214.3 million shares to 189.4 million shares, down 11.7 per cent. The average traded value increased 6.3 per cent to $30.6 million as against $28.8 million a day ago.

An analyst at Arif Habib Limited said the benchmark KSE-100 Index opened in the positive territory and continued to trade within the range through most of the trading session.

“However, in the last trading hour, the investors’ interest got ignited; following the press conference held by Prime Minister Shehbaz Sharif and the team, as Finance Minister Ishaq Dar indicated the much-anticipated solution for the resolution of the gas circular debt, which boosted the activity in E&P stocks.”

Healthy volumes were observed across-the-board, while both third-tier companies continued to dominate the volume board.

Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower on investors’ concerns for the World Bank lowering GDP growth forecast.

“The mid-session support witnessed on the Saudi government’s statements on raising the deposits to $5 billion at the SBP and $10 billion investment after $10.5 billion donor fundraising.”

“The rupee instability and uncertainty over the outcome of the Pakistan-IMF talks after the Oil and Gas Regulatory Authority’s (Ogra) approval of a massive surge in gas prices played a catalytic role in the bearish close.”

During the day, E&P, fertiliser, autos and banking sector stocks contributed positively to the index, where Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Fauji Fertiliser Company (FFC), Millat Tractors Limited (MTL) and Habib Bank Limited (HBL) added 181 points, cumulatively.

On the flip side, the United Bank Limited (UBL), TRG Pakistan and the Hub Power Company (Hubco) saw some profit-taking, as they lost 58 points, collectively.

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