Rising oil prices in the international market amid rising geopolitical tension dented investor sentiment at the Pakistan Stock Exchange, as the benchmark KSE-100 Index lost 0.65%, while volume and value of shares traded also decreased on Wednesday.
Escalation in conflict and a commodity storm meant the market opened on a negative note, with the index dropping 670 points to an intra-day low of 44,133.58.
However, by close, some of the intra-day losses were recovered with the KSE-100 Index ending the day 289.46 points or 0.65% lower to settle at 44,514.12.
AKD Securities, in its note, said that recent political events, both geo-political and domestic, have battered investor-sentiment.
“We believe domestic political front would remain heated with election year in sight, and the incumbent government responding through putting political optics over growth sustainability and potentially derailing Pakistan's reform story.
“Additionally, a loose fiscal policy may warrant a tighter-monetary policy as previously hinted by the central bank, which would further constrain market performance.”
The brokerage house added that the global commodities cycle is another determinant of market performance, at least in the short run. “In our view, any downside moves could bring a relief rally, though briefly. Hence, we advise investors to eye long-term gains against short-term trading, accumulating gradually on dips.”
Relief package improves sentiment as KSE-100 gains 343 points
On the economic front, the Federal Board of Revenue (FBR) surpassed the assigned monthly revenue collection target of Rs441 billion during February 2022, reflecting an increase of Rs2 billion.
Sectors driving the benchmark index downwards included cement (82.17 points), banking (64.77 points) and fertiliser (58.37 points).
Volume on the all-share index decreased drastically to 235.03 million from 309.35 million on Tuesday. The value of shares traded also declined to Rs9.35 billion from Rs10.45 billion recorded in the previous session.
TRG Pakistan Limited was the volume leader with 21.92 million shares, followed by Telecard Limited with 15.12 million shares, and Hum Network Limited with 12.76 million shares.
Shares of 354 companies were traded on Wednesday, of which 114 registered an increase, 215 recorded a fall, and 25 remained unchanged.