KARACHI: The Pakistan Stock Exchange (PSX) saw another drop on Wednesday, following the pattern that has been in place since the beginning of the week, with the benchmark KSE-100 index plunging below the 43,000-point barrier.
As a result, the benchmark KSE-100 index fell by 641.21 points, or 1.47 percent, to finish at 42,863.15 points.
The current negative trend was followed by impending concern over the International Monetary Fund (IMF) program, as well as a drop in the value of the rupee, which recently breached the 190-mark for the first time in its history (Wednesday).
Selling pressure was felt across the board as the government’s indecision on economic policy wreaked havoc on the stock market.
During the session today, the rupee fell to an all-time low versus the US dollar, with the greenback trading over Rs190 for the first time in its history.
According to the analyst, market participants also got unfavorable signals from Prime Minister Shehbaz Sharif’s recent travel to London, where party members are anticipated to make “major choices” with the input of PML-N supremo Nawaz Sharif.
“Investors are betting on further political upheaval as a result of PM Shehbaz’s travel to London,” he said, adding that the bourse’s investment environment is being harmed by the delay in making critical choices to restart the IMF program.
Ali said that the only option for the market to recover is for the IMF program to be successfully revived.
Meanwhile, Arif Habib Limited saw a slaughter session in the market today, noting that after beginning in the positive zone, the market failed to maintain momentum as fiscal and political concerns prompted investor confidence, sending the market into negative territory.
“The PSX experienced profit selling across the board today owing to increased depreciation of the Pakistani rupee versus the US dollar and tighter economic conditions,” it said.
According to the brokerage firm, the final trading hour saw value-buying in cement stocks, which helped the index reverse some of the day’s losses. The day continued sluggish, however, heavy volumes were seen in third-tier stocks.
During the session, 359 businesses’ shares were exchanged. At the end of trading, 47 scrips were in the green, 296 were in the red, and 16 were unchanged.
Overall trading volume increased to 338.54 million shares, up from 233.86 million on Tuesday. The total value of shares exchanged that day was Rs9.53 billion.
WorldCall Telecom Limited had the most shares traded (31.4 million), losing Rs0.10 to settle at Rs31.4. Cnergyico PK Limited came in second with 24.78 million shares traded, losing Rs0.43 to finish at Rs5.26, while Pak Elektron came in third with 16.77 million shares traded, losing Rs0.76 to close at Rs15.73.