KSE-100 falls over 500 points in aftermath of Peshawar blast
- Fears of tough decisions during upcoming visit of IMF officials could drag market lower, say analysts
The Pakistan Stock Exchange (PSX) faced a jolt on Monday as the KSE-100 Index fell over 500 points in the aftermath of a blast at a Peshawar mosque that left several dead and injured, as worsening security conditions signalled difficult times ahead for the country.
By the end of the session, the KSE-100 Index was down 579.26 points or 1.43% to trade at 39,871.27.
Intra-day update: rupee hits 270 against US dollar as the great fall continues
Market participants also remained concerned about the upcoming visit of an International Monetary Fund (IMF) delegation to Pakistan and the expected mini-budget which is expected to burden the common man.
Following an upward open, the market remained range-bound for most part of the day. However, the KSE-100 plunged as news of the blast made the headlines.
KSE-100 falls 0.97% owing to economic uncertainty
Index-heavy automobile, cement, banks, oil and fertiliser sectors turned into a sea of red.
Speaking to Business Recorder, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said the “the market felt the heat of the attack in Peshawar and tumbled”.
Arif Habib Limited Head of Research Tahir Abbas told Business Recorder that the “blast remains a huge reason behind the fall in stock market but there are several others.”
Investors expect tough decision from the IMF officials’ visit, he said.
Ismail Iqbal Securities Head of Research Fahad Rauf told Business Recorder that “the Peshawar blast and persistent instability in rupee against the US dollar were prime reasons behind the fall of the market.”
A report from Capital Stake said the PSX had failed to carry forward positive momentum from the morning session, and “indices slipped lower during the second half due to the blast at a mosque in Peshawar’s Police Lines area.”
On the economic front, Pakistan’s rupee continued to sustain heavy losses against the US dollar in the inter-bank market and fell Rs7.03 or 2.61% to close at 269.63.
Moreover, the government of Pakistan on Sunday raised petrol prices by Rs35 from Rs214.80 to Rs249.80 per litre.
Sectors driving the benchmark KSE-100 Index lower included banking (141.62 points) and fertiliser (82.54 points).
Volume on the all-share index fell to 140.5 million from 191.3 million on Friday. The value of shares plummeted to Rs5.5 billion from Rs7.1 billion recorded in the previous session.
Pak Refinery was the volume leader with 21.1 million shares, followed by Cnergyico PK with 11.8 million shares and Engro Polymer with 6.7 million shares.
Shares of 314 companies were traded on Monday, of which 80 registered an increase, 210 recorded a fall and 24 remained unchanged.
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