KSE-100 slumps 1.02% amid thin volumes
- Investors stay on sidelines as weakening economic cues dent sentiments
The Pakistan Stock Exchange (PSX) extended losses on Thursday and the KSE-100 index decreased 1.02% as weakening economic cues dented sentiment and investors chose to remain on the sidelines.
Imposition of secondary liabilities on HBL in a terror financing case added downside pressure to the market.
As a result, the KSE-100 Index finished the day with a decrease of 421.27 points or 1.02% to close at 41,013.86.
KSE-100 retreats marginally in roller-coaster session
Trading began with a dip and the market sustained the fall throughout the session. The decline accelerated in the final hour and inflated the losses.
Index-heavy cement, chemical, oil and banking sectors saw massive sell-off. Despite the pessimism, automobile sector ended the day mixed.
A report from Arif Habib Limited stated that the benchmark KSE-100 index witnessed a bloodbath session due to current political clamour and the negative news pertaining to HBL.
“As investors opted to remain on sideline from the market because of hazy economic forecast, the market opened in the red and remained under pressure for the rest of the day making an intra-day low of -524.31 points,” it said. “The volumes declined significantly across the main board on the contrary decent volumes were observed in the third tier stocks.”
Capital Stake, in its report, said that bears dominated the PSX.
“Indices traded in red all day long, whereas volumes fell from last close,” it said. “As per analysts, news of HBL facing secondary liabilities in a terror financing case created a havoc in the stock market.”
On the economic front, rupee gained for fifth successive session and recovered Rs2.5 or 1.07% against the US dollar to close at Rs229.62.
Sectors causing the benchmark KSE-100 Index to plummet included banking (246.77 points), technology and communication (52.96 points) and oil and gas exploration (26.77 points).
Volume on the all-share index contracted to 127.5 million from 220.6 million on Wednesday. On the other hand, the value of shares traded dropped to Rs5.5 billion from Rs8.03 billion recorded in the previous session.
K-Electric was the volume leader with 11.2 million shares, followed by TPL Pakistan with 9.98 million shares and TRG Pakistan with 7.8 million shares
Shares of 324 companies were traded on Wednesday, of which 103 registered an increase, 194 recorded a fall, and 27 remained unchanged.
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