- Delay in resumption of IMF programme continues to dent investor sentiment
Selling pressure persisted at the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark KSE-100 index fell 0.59%, with trading volumes falling to multi-year lows.
A persistent delay in revival of the International Monetary Fund (IMF) programme took a toll on sentiment, sparking a sell-off at the equity market.
Resultantly, the KSE-100 decreased 245.62 points or 0.59% to close at 41,102.57.
Trading had begun with a spike before tepid investor sentiments levelled the index in early hours. At this point, a selling spree emerged and the KSE-100 index fell for the remaining part of the day. The decline accelerated in the final hour and elevated the losses.
Widespread pessimism dragged index-heavy automobile, cement, banks, fertiliser and oil sector stocks lower.
A report from Capital Stake stated that downward trend continued at the PSX while volumes declined to the level last seen in August 2019. Equity markets around the globe showed mixed trend.
The day recorded one of the lowest traded volumes since August 2019 with 76.77 million shares changing hands.
A report from Topline Securities stated that Pakistan equities witnessed a lacklustre day on the backdrop of further delay in the IMF programme.
On the economic front, domestic cement sales fell by 6.65% on a year-on-year basis while exports fell by 47.7% compared to same period of last year, revealed data released by the All Pakistan Cement Manufacturers Association.
On a month-on-month basis, domestic cement sales appreciated by 57.78% while exports were up by 65.12%.
Sectors dragging the benchmark KSE-100 index lower included banking (80.54 points), cement (50.41 points) and fertiliser (35.87 points).
Volume on the all-share index contracted to 76.9 million from 86.6 million on Monday. The value of shares traded fell to Rs2.4 billion from Rs3.05 billion recorded in the previous session.
Maple Leaf Cement Company was the volume leader with 6.54 million shares, followed by WorldCall Telecom with 4.79 million shares, and Fauji Cement with 4.43 million shares.
Shares of 321 companies were traded on Monday, of which 119 registered an increase, 176 recorded a fall, and 26 remained unchanged.