KSE-100 snaps four-session winning streak, falls 0.18%

The Pakistan Stock Exchange (PSX) snapped the four-session winning spell on Friday and the KSE-100 Index fell 0.18% as investor sentiment took a hit from downward revision of Pakistan’s credit rating by Moody’s.

Late on Thursday, Moody’s Investors Service cut Pakistan’s sovereign credit rating by one notch to Caa1 from B3, citing increased government liquidity and external vulnerability risks. As a result, the KSE-100 Index fell 75.32 points or 0.18 % to close at 42,085.25. The benchmark KSE 100 index gained 2.32% on WoW basis.

Fourth session in green: KSE-100 ticks up 1.32%, aided by strong rupee

Trading began on a mixed note however, the KSE-100 Index rose steadily in the first session to close 136 points up. Selling pressure gripped the market in the second session and it erased all gains. Few attempts made by investors to lift the market upward proved futile and KSE-100 closed with a loss.

Widespread pessimism caused automobile, cement, chemical and oil sectors to close in the red. Banking sector however, ended at a mixed note.

A report from Capital Stake stated that PSX closed a nail-biting session on Friday flat.

“Indices swayed in both directions whereas volumes decreased from last close,” it said. “News of Moody’s downgrading Pakistan’s credit rating from B3 to Caa1 dented investor’s confidence.”

On the economic front, foreign exchange reserves held by the State Bank of Pakistan dipped $106 million, clocking in at an alarming level of $7.9 billion as of September 30, 2022.

On the other hand, the rupee maintained recovering spell and gained Rs2.02 or 0.91% against the US dollar, ending the session at Rs219.92.

Sectors dragging the benchmark KSE-100 Index lower included oil and gas exploration (40.11 points), technology and communication (26.26 points) and investment banking (18.58 points).

Volume on the all-share index retreated to 313.3 million from 442.6 million on Thursday. On the other hand, the value of shares traded dipped to Rs9.42 billion from Rs13.7 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 83.5 million shares, followed by Telecard Limited with 44.2 million shares and The Organic Meat Company with 9.9 million shares

Shares of 344 companies were traded on Friday, of which 134 registered an increase, 187 recorded a fall, and 23 remained unchanged.