KSE-100 extends losses as investors seek clarity on Finance Bill 2022

The Pakistan Stock Exchange (PSX) extended its decline on Wednesday as the KSE-100 shed 1.12% to fall below 41,500 points.

Debate on the amendments related to Finance Bill 2022 in the National Assembly and its approval kept market participants on the sidelines and the equity market witnessed thin trading volumes. The amendment to the Finance Bill 2022 was passed after market closed.

Finance Bill 2022: amendment to increase petroleum levy adopted

Meanwhile, the benchmark index closed the session at 41,297.73, down 467.89 points.

Trading began with minor fluctuations and the KSE-100 index remained range-bound during the first half of the session. The market dipped in the second half, although a buying spell in the final minutes erased some of the losses.

Index-heavy automobile, cement, banks and oil and gas exploration sector saw massive sell-offs.

KSE-100 falls 0.27% amid economic uncertainty

A report from Capital Stake stated that bearish sentiments prevailed at the PSX for a second consecutive session. Indices dropped lower for most part of the day, while volumes declined from last close.

As per analysts, investors preferred to stay on the sidelines as they waited for the approval of Finance Bill 2022, it said.

A report from Topline Securities highlighted that the market opened on a positive note but rumours regarding possible restriction on dividend of those banks that want to reclassify their Personal Internet Branch profile triggered a selling spree in banking sector stocks.

On the economic front, the rupee gained 1.76 against the US dollar to close at Rs205.12 per dollar.

Rupee gains for 2nd successive session, closes near 205 against dollar

Meanwhile, according to recent figures published by the State Bank of Pakistan, the country reported a current account deficit of $1.43 billion in May 2022 compared to a deficit of $640 million in same period last year.

Pakistan's current account deficit clocks in at $1.43bn in May 2022

Sectors dragging the benchmark KSE-100 index lower included banking (271.55 points), oil and gas exploration (58.63 points) and technology and communication (56.76 points).

Volume on the all-share index fell to 142.2 million from 257.2 million on Tuesday. The value of shares traded dropped to Rs5.35 billion from Rs7.7 billion recorded in the previous session.

K-Electric was the volume leader with 14.37 million shares, followed by WorldCall Telecom with 11.62 million shares, and Hascol with 7.56 million shares.

Shares of 316 companies were traded on Tuesday, of which 124 registered an increase, 168 recorded a fall, and 24 remained unchanged.