The Pakistan Stock Exchange (PSX), in line with the prevailing trend since the start of this week, experienced another slump on Wednesday, with the benchmark KSE-100 index falling below the 43,000-point mark.
Resultantly, the benchmark KSE-100 index plunged by 641.21 points, or 1.47 percent, to close at 42,863.15 points.
The recent bearish trend was followed by the looming uncertainty regarding the International Monetary Fund (IMF) programme as well as a fall in the value of the rupee — which surpassed the 190-mark for the first time in its history today (Wednesday).
Selling pressure was witnessed across the board as the government’s indecisiveness over economic strategy caused mayhem at the bourse.
Capital market expert Saad Ali said that the market is reacting negatively to the worsening economic crisis and depreciating rupee against the US dollar
The rupee value against the US dollar touched an all-time low during the session today as the greenback was trading above Rs190 — for the first time in its history.
The analyst said that the market players also took negative cues from Prime Minister Shehbaz Sharif’s recent visit to London where the party members with the consultation of PML-N supremo Nawaz Sharif are expected to take “big decisions.”
“The investors are speculating another political turmoil due to the news of PM Shehbaz’s trip to London,” he said, adding that the delay in taking tough decisions in order to revive the IMF programme is denting the investment climate at the bourse.
Ali mentioned that the only way for the market to rebound is the successful revival of the IMF programme.
Meanwhile, Arif Habib Limited in its post-market commentary noted that a bloodbath session was observed in the market today, despite opening in the positive zone the market failed to sustain the momentum as fiscal and political uncertainty triggered the investor confidence pushing the market into negative territory.
“The PSX witnessed profit selling across the board today due to further devaluation of Pakistani rupee against the US dollar and tightening economic situation which pulled the KSE-100 index down to 1,100 points giving the bears an upper hand,” it stated.
The brokerage house added that the last trading hour witnessed value-buying in cement stocks helping the index to erase some of the losses incurred during the day. The session remained dull, on the contrary, hefty volumes were observed in third-tier stocks.
Shares of 359 companies were traded during the session. At the close of trading, 47 scrips closed in the green, 296 in the red, and 16 remained unchanged.
Overall trading volumes rose to 338.54 million shares compared with Tuesday’s tally of 233.86 million. The value of shares traded during the day was Rs9.53 billion.
WorldCall Telecom Limited was the volume leader with 31.4 million shares traded, losing Rs0.10 to close at Rs31.4. It was followed by Cnergyico PK Limited with 24.78 million shares traded, losing Rs0.43 to close at Rs5.26 and Pak Elektron with 16.77 million shares traded, losing Rs0.76 to close at Rs15.73.