KARACHI: Pakistan Stock Exchange Monday witnessed a bloodbath and closed in deep red with heavy losses due to increase in the political noise over the weekend, uncertainty regarding resumption of the IMF Program along with continued depreciation of Pak rupee against the US dollar and rumour of interest rate hike in the Monetary Policy, shattering investor confidence.
The market opened on a negative note and remained in red zone throughout the session due to selling pressure in almost all sectors as the investors opted to offload their holdings due to prevailing economic and political situation.
The benchmark KSE-100 Index plunged by 660.46 points or 1.53 percent and closed below 43,000 psychological level at 42,440.25 points. During the session, the KSE-100 Index hit 42,341.65 points intra-day low level.
Trading activity remained very thin as total daily volumes on ready counter decreased to 118.986 million shares as compared to 189.926 million shares traded on previous session while total daily traded value on ready counter declined to Rs 3.576 billion against previous session’s Rs 3.830 billion.
BRIndex100 decreased by 77.87 points or 1.82 percent to close at 4,202.22 points with total daily turnover of 111.089 million shares.
BRIndex30 declined by 353.78 points or 2.37 percent to close at 14,547.30 points with total daily trading volumes of 78.417 million shares.
Foreign investors also remained net sellers of shares worth $567,244. Total market capitalization declined by Rs 96 billion to Rs 7.047 trillion. Out of total 314 scrips, 250 closed in negative and only 48 in positive while the value of 16 stocks remained unchanged.
Silk Bank was the volume leader with 9.979 million shares and gained Rs 0.04 to close at Rs 1.32 followed by WorldCall Telecom that lost Rs 0.09 to close at Rs 1.50 with 7.624 million shares. K-Electric closed at Rs 2.50, down Rs 0.08 with 6.123 million shares.
Bhanero Textile and Blessed Textile were the top gainers increasing by Rs 102.45 and Rs 19.99 respectively to close at Rs 1525.00 and Rs 509.99 while Bata Pak and Rafhan Maize were the top losers declining by Rs 99.00 and Rs 90.00 respectively to close at Rs 1900.00 and Rs 9900.00.
An analyst at Arif Habib Limited said that the market witnessed a bloodbath session as investor remained bearish throughout the day. The benchmark KSE-100 index nosedived from the beginning of the session as increase in the political noise over the weekend and uncertainty regarding resumption of IMF Program along with continued depreciation of Pak Rupee against US Dollar and rumor of rate hike in the Monetary policy, shattering investors’ confidence. Volumes remained dull in the main board although hefty volumes were observed in 3rd tier stocks.
Sectors contributing to the performance include Cement (down 120.8 points), Fertilizer (down 89.0 points), E&P (down 79.9 points), Technology (down 72.5 points) and Banks (down 63.1 points).
BR Automobile Assembler Index decreased by 94.84 points or 0.98 percent to close at 9,622.12 points with total turnover of 667,401 shares.
BR Cement Index plunged by 160.82 points or 3.63 percent to close at 4,268.54 points with 12.925 million shares.
BR Commercial Banks Index lost 56.06 points or 0.58 percent to close at 9,527.84 points with 14.368 million shares.
BR Power Generation and Distribution Index declined by 107.39 points or 2.02 percent to close at 5,212.16 points with 7.739 million shares.
BR Oil and Gas Index fell by 62.52 points or 1.72 percent to close at 3,566.16 points with 4.547 million shares.
BR Tech. & Comm. Index closed at 3,200.16 points, down 98.85 points or 3.0 percent with 23.488 million shares.
Ahsan Mehanti at Arif Habib Corporation said that stocks closed sharply lower on FM hints over surge in SBP policy rates amid falling rupee and expectations over government decisions on energy prices to resume IMF program this week.
He said government decisions over ban on luxury imports impacting industrials and delays over approval of sought Saudi aid package played a catalyst role in bearish close.
Copyright Business Recorder, 2022