After a brief gap, the Bears returned to the stock exchange on Wednesday, as it closed above the psychological barrier of 54,000 points in another record-breaking session. Meanwhile, the rupee continued to slide against the dollar.
In the Pakistan Stock Exchange, the session opened at 53,735.73 points. Despite the negative momentum from the day before, investors remained upbeat.
By the close of the day, the index rose to 54,261, marking a gain of 525 points, equivalent to a 0.98% increase over the previous day's close. During trading, the index had witnessed a peak of 54,419.65 points.
However, what was record-breaking was that the index saw some 481.6 million shares, the highest trading volume recorded since November 30, 2021.
The positive momentum in the market was fuelled by the power, fertiliser, banking, and auto sectors, with companies such as Hub Power Company (HUBC), Engro Corporation Limited (ENGRO), Meezan Bank Limited (MEBL), Habib Bank Limited (HBL) and Millat Tractors Limited (MTL) collectively contributing 208 points to the index.
On the other hand, Indus Motor Company Limited (INDU), TRG Pakistan Limited (TRG), and Pak Elektron Limited (PAEL) together caused a loss of 54 points.
Pakistan Refinery Limited (PRL_ led the trading volume on Wednesday, the last session before a break on Thursday. PRL saw 40.2 million shares changing hands, or just shy of 10% of the overall market volume. While the overall market trading volume was 481.6 million shares, the first time since November 30, 2021, their total value was just Rs20.1 billion.
Rupee slips
In the money market, the rupee continued to slip against the US Dollar on Wednesday.
According to data released by the State Bank of Pakistan (SBP), the rupee lost Rs0.5048 (0.18%) against the US dollar, with the rupee slipping from Rs286.39 on Tuesday to Rs286.90 on Wednesday.
Interbank closing #ExchangeRate for todayhttps://t.co/YdjtZG4oee#SBPExchangeRate pic.twitter.com/07WwIsUvhZ
— SBP (@StateBank_Pak) November 8, 2023
The dip, experts explained, is primarily due to the government liberalising imports and dividend restrictions, coupled with the pressure of meeting IMF targets to keep the rupee in check.