- Rupee drops near all-time low value as IMF tranche, loan rollover fail to reverse sentiment
The Pakistan Stock Exchange extended the decline for a sixth session on Wednesday and the KSE-100 Index fell below the 41,000-point barrier as continuous drop in the value of rupee against US dollar dampened trading environment.
Receipt of $1.2 billion tranche from the International Monetary Fund (IMF) coupled with rollover of $3 billion loan by Saudi Arabia failed to reverse the sentiment in foreign exchange market and the local currency closed near all-time low value.
Moreover, weakening macroeconomic cues also played on investors’ mind and they rushed to sell-off their holdings.
As a result, the KSE-100 Index finished with a drop of 255.33 points or 0.62% to close at 40,965.58.
Early hours of the day saw lacklustre activity as the KSE-100 Index remained range-bound until midday. At this point, a selling spell dragged the KSE-100 lower and made it close with loss.
Automobile, chemical, fertiliser, oil and banking sectors closed with modest losses.
A report from Capital Stake stated that extending losses from the previous session, the PSX closed the day on Wednesday in red.
“Indices traded in red for most part of the day, while volumes appreciated from last close,” the report said.
Arif Habib Limited (AHL), in its report, said “another down-close session today after a positive open zone. Continued pressure on the rupee softened sentiment to take the KSE-100 below 41,000.”
All eyes are on the Federal Reserve tonight and the quantum of rate increase, AHL said.
On the economic front, the government of Pakistan hiked petrol prices by Rs1.45 per litre to Rs237.43 for the remaining month of September. Moreover, rupee lost Rs0.74 or 0.31% against the US Dollar on day-on-day basis to end at Rs239.65.
Sectors dragging the benchmark KSE 100 index downhill included oil and gas exploration (91.92 points), cement (36.18 points) and technology and communication (26.87 points).
Volume on the all-share index rose to 170.4 million from 156.6 million on Tuesday. On the other hand, the value of shares traded fell to Rs4.8 billion from Rs5.7 billion recorded in the previous session.
K-Electric was the volume leader with 40.3 million shares, followed by TPL Properties with 11.9 million shares and TRG Pakistan with 11.38 million shares
Shares of 319 companies were traded on Wednesday, of which 100 registered an increase, 195 recorded a fall, and 24 remained unchanged.