- Participation remains thin as investors adopt wait-and-watch strategy
The Pakistan Stock Exchange (PSX) extended losses for the fourth successive session on Monday as the KSE-100 index declined 0.38% in a turbulent session. Investor participation thinned as they adopted a wait-and-watch approach amid looming economic uncertainty.
As a result, the KSE-100 Index finished with a drop of 158.9 points or 0.38% to close at 41,520.59.
The KSE-100 opened the session with an ascent and rose until noon. At mid-day, the market came in the grip of a selling spell which erased the gains and levelled it. The index remained range-bound for the rest of the session and closed with loss.
Index-heavy automobile, chemical, banks, oil and cement spaces closed with losses.
A report from Capital Stake stated the PSX ended the first trading session of the week on a negative note. Indices swayed in both directions, while volumes decreased from last close.
A report from Topline Securities stated equities closed negative where benchmark KSE-100 Index settled at 41,520 level.
Market opened on a positive note as Saudi Arabia announced to roll over $3 billion deposit maturing in December and an assurance from the IMF for its support for flood relief and reconstruction efforts which led the market to make an intraday high of 41,896.7 points.
“However, this positivity did not sustain at the bourse and profit taking has been witnessed which led the market to make an intraday low of 174 points,” it said.
On the economic from, the Saudi Fund for Development (SFD) confirmed the rollover of $3 billion deposit maturing on December 5, 2022 for one year.
Moreover, the International Monetary Fund (IMF) announced that it would support Pakistan’s effort to provide relief to flood affected areas under its current program.
On the other hand, rupee fared no better and depreciated for the twelfth consecutive session and lost Rs1.07 or 0.45% against the US Dollar on a day-on-day basis.
Sectors dragging the benchmark KSE-100 index downward included banking (62.75 points), cement (30.61 points) and chemical (30.26 points).
Volume on the all-share index contracted to 148.2 million from 219.4 million on Friday. On the other hand, the value of shares traded fell to Rs7.5 billion from Rs8.9 billion recorded in the previous session.
TRG Pakistan was the volume leader with 24.7 million shares, followed by TPL Properties with 11.4 million shares and Hascol with 10.8 million shares.
Shares of 331 companies were traded on Monday, of which 93 registered an increase, 215 recorded a fall, and 23 remained unchanged.