Bearish sentiment continued at the stock market as Pakistan's benchmark KSE-100 recorded a fall of over 290 points on Wednesday, with cement and steel stocks taking the hit.
Rising commodity prices have kept investors jittery with trade deficit figures and pressure on the rupee taking toll on overall market sentiment.
At close on Wednesday, the KSE-100 finished with a fall of 293.34 points or 0.66% to settle at 44,373.23.
KSE-100 down 0.84% as commodity prices weigh in on sentiment
“Selling pressure continued unabated at the bourse, courtesy foreign investors. Eye-watering commodity prices especially coal have had their bearing on cement and steel sector stocks and had ripple effects on O&GMCs, E&P sectors due to concerns over a potential increase in circular debt emanating from rising energy cost,” said Arif Habib Limited in its post-market comment.
“A key conditionality from IMF for resumption of the program has been an upward revision in electricity tariff, besides an end to subsidies and increase in tax revenues. These measures in part or whole are expected to dent earnings growth of the corporate sector in the coming quarters, which is reflecting on stock prices as well,” said AHL.
Sectors dragging the benchmark KSE-100 lower included cement (91 points), textile (36 points), banks (35 points), and technology (30 points).
Volume on the all-share index decreased from 334.69 million on Tuesday to 252.76 million on Wednesday. The value of shares trade also recorded a decline, amounting to Rs10.08 billion from Rs13.54 billion on Tuesday.
Unity Foods Limited was the volume leader with 25.72 million shares, followed by Telecard Limited with 20.15 million shares, and WorldCall Telecom with 16.83 million shares.
Shares of 554 companies were traded on Wednesday, of which 109 registered an increase, 423 recorded a fall, while 22 remained unchanged.
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