KARACHI, December 13th 2024: The stock market experienced a range-bound session on December 13, 2024, as the index oscillated between an intraday high of 992 points and an intraday low of -1,571 points, eventually closing at 114,302, reflecting a modest uptick of 0.11%. The trading day was marked by a combination of optimism and pressure, with the banking sector facing notable headwinds. This sector’s slump weighed down on the overall index, as stocks like UBL, MEBL, BAHL, HBL, and BAFL collectively lost a significant 860 points.
The bearish sentiment in the banking sector was largely attributed to the recent developments surrounding the Finance Act 2022. This week, a committee formed to explore alternatives to the ADR-based tax regime finalized its recommendations. The government had previously introduced higher tax rates for banks with an ADR ratio below 50%, aiming to promote commercial lending and discourage passive income. These regulatory changes have sparked uncertainty among investors in the banking sector.
Meanwhile, the oil sector showed notable resilience as investor interest surged, particularly in stocks such as MARI, PSO, OGDC, and PPL. These companies led the market in terms of traded value, with MARI taking the lead at Rs. 5.29 billion, followed by PSO at Rs. 3.89 billion, OGDC at Rs. 3.73 billion, and PPL at Rs. 2.71 billion. This sector’s performance helped counterbalance the decline in banking stocks, contributing to a positive overall market close.
Trading Volumes and Market Dynamics
The day’s trading volume stood at 1.11 billion shares, with a total value of Rs. 59.5 billion, reflecting a healthy level of market activity despite sectoral fluctuations.
Weekly Review: KSE 100 Index Continues Its Upward Streak
Date: December 13, 2024
A Strong Week for KSE 100 Index
The KSE 100 Index posted an impressive gain of 4.83% week-on-week (WoW), marking its eighth consecutive positive week of closing. Investor sentiment remained buoyant, driven by expectations of an interest rate cut in the upcoming monetary policy meeting. This optimism was further supported by continuous buying from mutual funds, which injected additional stimulus into the market.
Key Market Developments
Several key developments during the week added to the positive momentum:
- Remittance Surge: Remittances for November 2024 surged to US$ 2.915 billion, marking a 29% year-on-year (YoY) increase, which provided a boost to market sentiment.
- Car Sales Growth: Car sales, as reported by the Pakistan Automotive Manufacturers Association (PAMA), rose sharply by 57% YoY in November 2024, totaling 10,163 units. However, there was a 22% month-on-month (MoM) decline, highlighting potential seasonal factors.
- T-Bill Auction Results: The T-Bill auction attracted substantial participation, with Rs. 1,929 billion in bids. The government raised Rs. 1,256 billion, surpassing the target of Rs. 1,200 billion, with yields declining by 5-100bps across various tenors.
Weekly Trading Overview
The average daily traded volume and value for the week were 1.36 billion shares and Rs. 60.6 billion, respectively, underscoring the healthy market activity and investor confidence in the midst of positive economic indicators and ongoing policy developments.
