KSE-100 closes flat in roller-coaster trading session

The Pakistan Stock Exchange (PSX) recorded a roller-coaster session on Tuesday as after witnessing sharp fluctuations in red and green zones, the KSE-100 ended on a flat note.

Expectation of an uptick in inflation owing to onslaught of floods struck investor sentiments and triggered volatility in the equity market. As a result, the KSE-100 index finished with a marginal gain of 1.06 points to close at 41,860.36.

Trading began downward but the KSE-100 index managed to stage a turnaround and rose to an intra-day high in the initial hour. From this point onward, the session turned topsy-turvy and the market oscillated between positive and negative zone to close near the opening level.

KSE-100 falls below 42,000 as flood damages play on investors’ mind

Automobile sector saw sizable investment while cement saw witnessed divestment during the session. On the other hand, banks and oil sectors closed the day on a mixed note.

A report from Capital Stake highlighted that the PSX witnessed a turbulent session on Tuesday.

“Indices swung both ways until finally settling flat, while volumes appreciated from last close,” it said. “Import of basic commodities due to flooding situation across various parts of the country was one of the reasons of volatility in the market.”

Moreover, the depreciation of rupee against US dollar also acted as a negative trigger, it said.

A report from Arif Habib Limited stated that the market remained range-bound throughout the day, due to concerns over rising inflation number.

“The benchmark KSE-100 index opened in the positive zone however, investors’ participation remained sideways due to continuous rupee devaluation against US dollar,” it said. “Volumes remained dry in the main board although hefty volumes were witnessed in the third tier stocks.”

On the economic front, rupee fell for third consecutive session to settle at Rs221.42 against dollar following a loss of Rs1.56 or 0.7%.

Third successive loss: Rupee settles at 221.42 against US dollar

Sectors driving the benchmark KSE-100 north included banking (38.61 points), oil and gas marketing (36.43 points) and technology and communication (30.21 points).

Volume on the all-share index jumped to 187.3 million from 156.8 million on Monday. On the other hand, the value of shares traded inched lower to Rs4.02 billion from Rs4.37 billion recorded in the previous session.

Hascol was the volume leader with 46.8 million shares, followed by PIA with 10.88 million shares and Fauji Foods with 9.34million shares.

Shares of 335 companies were traded on Tuesday, of which 146 registered an increase, 166 recorded a fall, and 23 remained unchanged.