KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fell sharply on Monday, the first day of the rollover week, as an all-out sell-off sent share prices into the red.
Investors are concerned about the coalition government’s delay in making difficult economic choices and the increased political instability. Furthermore, the Pakistani rupee continues to fall, with the US dollar rising 0.39 percent to end at 200.93 on Monday.
Concerns over monetary policy tightening, which was to be disclosed after the session, kept the index uneasy.
In order to stabilize inflation and economic development, the State Bank of Pakistan (SBP) hiked the benchmark interest rate by 150 basis points to 13.75 percent for the next six weeks, contrary to market forecasts.
Furthermore, market participants were concerned about the continuing discussions between Pakistan and the International Monetary Fund (IMF) mission for the resurrection of the delayed multibillion-dollar scheme.
The benchmark KSE-100 index ended the day at 42,440.25, down 660.46 points or 1.53 percent.
The market had a bloodbath session, according to Arif Habib Limited, as investors remained pessimistic throughout the day.
“A rise in political noise over the weekend, uncertainty over the restart of the IMF programme, sustained depreciation of the Pakistani rupee versus the US dollar, and a rate hike in the Monetary Policy destroyed investors’ confidence,” according to the article.
The brokerage company reported that trading on the mainboard remained low, but that third-tier equities saw high volumes.
Cement (-120.8 points), fertilizer (-89 points), exploration and production (-79.9 points), technology (-72.5 points), and banks all contributed to the performance (-63.1 points)
During the session, 314 businesses’ shares were exchanged. 48 scrips finished in the green, 250 in the red, and 16 stayed unchanged at the conclusion of the trade.
Overall trading volumes increased to 118.98 million shares, up from 189.92 million on Friday. During the day, Rs3.57 billion worth of shares were exchanged.
With 9.97 million shares traded, Silk Bank was the most active, earning Rs0.04 to settle at Rs1.32. WorldCall Telecom came in second, with 7.62 million shares traded, losing Rs0.09 to end at Rs1.50, while K-Electric came in third, with 6.12 million shares traded, losing Rs0.08 to settle at Rs2.50.
For the latest Business & Tech news, follow on Facebook, and Google News. For the latest news on business & technology
Discussion about this post