The Pakistan Stock Exchange (PSX) recorded a turbulent session on Tuesday as the KSE-100 index gained 0.14%, with market participants resorting to value-hunting stocks and lifting the index upwards.
Buoyed by concerns over external account deterioration, the equity market had collapsed on Monday, as concerns over deteriorating macroeconomic indicators motivated market players to offload their holdings and sparked volatility. Stock prices fell to attractive levels, appealing to investors.
KSE-100 plunges 1.88%, closes at 15-month low
Tuesday's session started on a volatile note and the KSE-100 index traded on both sides of the spectrum. Cherry-picking by market players lifted the index upward but a panic-induced selloff added to downside pressure. The equity market oscillated between red and green zones throughout the session and traded in a narrow range. A buying spell towards the end of the day made the index close with gains.
At close on Tuesday, the KSE-100 ended with a gain of 58.74 points, up 0.14%, to finish at 42,726.06. In a report, Capital Stake noted that investors at the PSX witnessed a jittery session with indices swayed both ways until finally settling flat.
The depreciation of the Pakistani rupee against the US dollar further dented investors’ confidence, as it continued its record losing streak, closing the day at an all-time low of Rs195.74 against the greenback.
Rupee sinks for ninth successive session, closes at 195.74 in inter-bank trading
On a positive note, Pakistan and the International Monetary Fund (IMF) are set to hold talks on Wednesday which are expected to pave way for improvement of the economy.
Sectors driving the benchmark KSE-100 index upward included banking (31.02 points), technology and communication (30.74 points) and fertiliser (17.67 points).
Volume on the all-share index fell to 197.92 million from 250.45 million a day prior. The value of shares traded dropped to Rs6.18 billion from Rs8.91 billion recorded in the previous session. WorldCall Telecom was the volume leader with 21.95 million shares, followed by Cnergyico PK with 15.47 million shares, and Lotte Chemical with 11.48 million shares.
Shares of 326 companies were traded on Tuesday, of which 171 registered an increase, 127 recorded a fall, and 28 remained unchanged.