Pakistan Stock Exchange (PSX) continued facing selling pressure during another session on Tuesday as the benchmark KSE-100 index shed more than 700 points and closed under the 47,000-point mark.
Investor sentiment dampened owing to the rupee falling back into a downward spiral along with the delay in the renewal of the International Monetary Fund (IMF) program.
The KSE-100 index recorded at closing a drop of 715.13 points, or 1.52%, to settle at 46,399.91 points.
Arif Habib Limited issued a report regarding the bloodbath session owing to the local currency’s weakening against the greenback, soaring inflation, and the renewal of a foreign selling spree.
As per the report, “The market opened on a bleak note after the news clocked in the morning that revival of $6 billion stalled IMF program for Pakistan hinges upon stamped clearance of IMF’s two departments before forwarding [to] the Fund’s executive board”.
It added that the textile sector remained under pressure for a second straight session due to concerns pertaining to the elimination of subsidized gas supply.
The institutional activity also continued with the sell-side owing to redemptions from the mutual fund industry.
Shares of 359 listed companies were traded in the session. Towards the end of the trading session, 48 stocks closed in the green, 296 in the red, while 15 remained unchanged.
Overall trading volumes increased to 434.7 million shares in comparison with Monday’s tally of 364.9 million. The value of the traded shares during the day was recorded at Rs14.3 billion.
In terms of volume traded, Telecard Limited led the index with 33.5 million shares, dropping Rs0.02 to close at Rs19. Fauji Foods followed Telecard Limited with 28.8 million shares, shedding Rs1 to close at Rs3.28, while First National Equities with 25.35 million shares, gained Re1 to close at Rs11.04.
Sectors that contributed to a dismal performance at the PSX comprised commercial banks (-123 points), cement (-102 points), technology (-79 points), exploration and production (-63 points), and power (-46 points).
The report stated, “Accumulation was witnessed in the banking sector as KIBOR rates have witnessed a sharp rise in the past one month, where the spread between the 6M KIBOR and policy rate has touched a high of 162 basis points, increasing from its average spread of 50bps”.
