In the first day of the rollover week, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) plummeted on Monday due to an all-out selling binge.
Investors have been alarmed by the coalition government’s inability to make tough economic decisions and the consequent rise in political uncertainty. With the U.S. dollar gaining 0.39 percent to close at 200.93, the Pakistani rupee continues its downward spiral.
Anxieties over a possible tightening of monetary policy were weighing on the index, which remained volatile.
The State Bank of Pakistan (SBP) surprised the market by raising the benchmark interest rate by 150 basis points to 13.75 percent for the next six weeks in order to stabilise inflation and economic growth.
Miftah Ismail reiterates that there would be no increase in petroleum prices, but he does hint at an increase in the interest rate.
There was also a lot of doubt about the ongoing talks between Pakistan and the International Monetary Fund (IMF) mission in Pakistan for the resurrection of the delayed multibillion dollar initiative.
Benchmark index closed 42,440.25 points or 1.53 percent down on the KSE-100 index at the close.
A bloodbath session was reported by Arif Habib Limited as investors remained pessimistic throughout the day.
As a result of a rise in political noise and uncertainty over a resumption of an IMF programme, “the benchmark KSE-100 index nosedived at the opening of the session,” the article stated.
There are growing concerns about IMF talks in Pakistan and this has led to a rise in Pakistani international bond yields
There was a noticeable lack of activity on the major board, but a lot of activity on the third-tier stock exchanges.
Financial institutions were among those that helped drive up the score from -79.5 to -120.8 points thanks to their work in cement, fertiliser, exploration and production, technology, and banking, among others (-63.1 points)
During the trading session, 314 stocks were exchanged. At the end of the day’s trading, 48 stocks ended higher, 250 were lower, and 16 were unchanged.
In total, 118.98 million shares were traded, up from 189.92 million on Friday. A total of Rs3.57 billion worth of shares were exchanged during the day.
In terms of trading volume, Silk Bank led the pack with 9.97 million shares changing hands for a gain of Rs0.04 to settle at Rs1.32. Second and third place went to WorldCall Telecom and K-Electric. Both of these companies saw their share prices fall by more than a tenth of a cent.
