The inventory market plunged sharply on Thursday, persevering with its downward spiral as profit-taking and aggressive year-end promoting continued.
The KSE-100 Index tumbled over 2% at its nadir throughout the session, reflecting a pronounced bearish sentiment regardless of enhancing macroeconomic indicators. Stricter tax amendments and escalating financial uncertainties additional dampened the temper, leaving the market entrenched in warning and deep within the crimson.
The Pakistan Stock Exchange’s (PSX) benchmark index slipped to a low of 109,858.88, reflecting a pointy decline of two,555.92 factors, or -2.27%, from the earlier shut.
The market remained underneath stress as institutional buyers adjusted their portfolios forward of the year-end.
The market closed within the crimson on Tuesday as nicely, dropping to an intraday low of 112,294.42 earlier than closing at 112,414.8, marking a decline of 1,509.61 factors or -1.33% from the earlier shut of 113,924.41.
The inventory market was closed on Wednesday as a result of a public vacation.
Pakistan’s exports for the primary 5 months of FY2024-25 grew by 12.57% to $13.691 billion from $12.162 billion in the identical interval final 12 months. However, November exports fell by 5.97% to $2.804 billion, down from $2.982 billion in October.
Shipments to the European Union (EU) elevated by 14% to $4.8 billion, matching complete exports to the broader Asian area. Exports to the US, Pakistan’s largest export vacation spot, rose by 14% to $2.4 billion. Conversely, exports to China dropped by 14%, whereas shipments to the UAE and Afghanistan surged by 35% and 42%, respectively.
Pakistan’s credit score default swap (CDS) spreads tightened by 88% to 1,493 foundation factors, signalling diminished credit score danger. Foreign change reserves rose to $12 billion in December 2024, a big enhance from $2.9 billion in February 2023, supported by the State Bank of Pakistan’s (SBP) current 200 foundation level coverage charge minimize from 15% to 13%.
The present account surplus in November reached $729 million, a decade-high determine, in comparison with a $148 million deficit in November 2023. This led to a five-month surplus of $944 million in FY2024-25, contrasting sharply with a deficit of $1.67 billion throughout the identical interval final 12 months.
Foreign direct funding (FDI) throughout the first 5 months of FY2024-25 grew by 31% year-on-year to $1.124 billion, with $219 million recorded in November. Major buyers included China, Hong Kong, and the UK, specializing in the ability and monetary sectors.
The proposed Tax Laws (Amendment) Bill, 2024, seeks to impose stricter restrictions on non-filers, barring them from buying autos over 800cc, buying high-value properties, or making giant monetary transactions. These measures have raised considerations about diminished liquidity and client spending, additional contributing to market warning.
While improved macroeconomic fundamentals provide some help, buying and selling exercise displays a steadiness between profit-taking and optimism over Pakistan’s financial restoration.
