How did the market perform in April 2024?

Posted by: KSEStocks News 1

How did the market perform in April 2024?

In April 2024, the Karachi Stock Exchange 100 (KSE100) Index saw significant gains, climbing by 6.1% Month-on-Month (MoM), equivalent to 4,097 points. This increase surpassed the 3.8% MoM growth observed in March 2024. The market experienced positive momentum driven by various developments and market sentiments.

Key Highlights

  • Market Performance: The local bourse surged during April’24, fueled by receding inflation expectations and positive market reactions to notable events. These included the visit of a Saudi delegation, finalization of a US$3.0bn IMF Stand-by Arrangement, and prospects of a larger Extended Fund Facility (EFF).
  • Monetary Policy Committee (MPC) Decision: There was anticipation and mixed expectations surrounding the MPC’s decision on the policy rate. The central bank ultimately opted to maintain the status quo, signaling a cautious approach amid ongoing geopolitical events and discussions related to the new EFF program.
  • Current Account Surplus: Pakistan recorded its largest current account surplus in nine years in March 2024, amounting to US$619 million. This contributed to a significant reduction in the nine-month deficit to US$508 million, down 88% year-on-year (YoY).
  • Sector Performance: The Fertilizer sector emerged as the best performer in April’24, posting a return of approximately 12.23% MoM. This was driven by expectations of uninterrupted gas supply to Urea producers and improving sector fundamentals.

Sectoral Performance

The Fertilizer sector led the market gains, followed by Synthetic & Rayon, Pharmaceuticals, Sugar & Allied, and ETFs. Conversely, the Tobacco, Transport, and Miscellaneous sectors experienced declines during the period.

Top performers

  • Top Performers:
  • Fertilizers: ~12.23% MoM
  • Synthetic & Rayon: ~12.19% MoM
  • Pharmaceuticals: ~11.9% MoM
  • Sugar & Allied: ~11.7% MoM
  • ETFs: ~10.4% MoM

Top Decliners

  • Decliners:
  • Tobacco: -17.2% MoM
  • Transport: -11.3% MoM
  • Miscellaneous: -10.9% MoM

Investment Perspective

The State Bank of Pakistan (SBP) is maintaining real rates at around 5% as of April’24 to anchor inflation expectations. However, the trajectory of the anticipated easing cycle will depend on stabilizing the external account, primarily through IMF oversight.


📢 Announcement: We're Moving to Discord – Join Us There! 

 

Hi everyone! 👋

To improve your experience and offer additional features, we’re moving our community from WhatsApp to Discord!

Here’s what you’ll get on Discord:

✅ Research Reports Channel – Access a regularly updated compilation of valuable research reports
✅ PSX24/7 Bot – Ask anything about the PSX and get instant insights powered by KSEStocks historical data
✅ Organized Channels – Separate spaces for discussions, news, reports, and more
✅ Better Notifications – Control what you see and when
✅ Smoother Interaction – Easier to follow and participate in conversations
✅ Organized trading ideas - trading ideas that you can discuss and keep track of

Join now 👉 https://discord.gg/kST9hWjS

 


 

The market’s future direction is anticipated to be influenced by:

  • Revenue measures in the upcoming Federal Budget.
  • Potential revisions in electricity and gas tariffs during the summer months, which could impact inflation figures.

Source: AKD Research

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →


Don't miss:


 

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *