Political insecurity, predicted interest rate hike drags PSX 546 points down

On a day when stocks in all major Asian countries, including Nifty 50 in India, made significant gains while the markets in Europe were also trading higher, the Pakistan Stock Exchange saw the benchmark KSE-100 Index going down 1.23 percent, or 502.76 points.

By the time trading was closed, the KSE-100 was recorded at 40,504.76 against the last session’s closing value of 41,007.52.

The panic in the market was a product of dwindling foreign reserves with the country making more repayments without getting new pledges, said Ali Nadeem – the Head of Sales at National First Equity Limited (NFEL).

However, he noted that the state-owned entities like Pakistan State Oil, Pakistan Petroleum Limited, Sui Northern and Sui Southern were among the gainers despite all the slump. The reason this trend, according to Nadeem, are the expectations of getting some inflow from the UAE and the possible buying of shares in these companies.

On the other hand, the tech sector was among the top losers mainly due to the Resource Group International Limited (TRG International) has filing a lawsuit against JS Bank Limited, JS Global Capital Limited (JSGCL), Bank AL Habib Limited (BAHL), DJM Securities Limited, Muhammad Ziaullah Khan Chishti, Sarah Jennifer Pobereskin and others on violation of the Stock Purchase Agreement (SPA).

In a notice to the Pakistan Stock Exchange, the company said, “TRG International believes that the lending arrangements entered into by Zia Chishti and Sarah Jennifer Pobereskin with JS Bank, JSGCL, BAHL, and DJM Securities Limited are in violation of the SPA binding on Zia Chishti.”

Therefore, it placed restrictions on any transfer or encumbrance on shares of TRG Pakistan directly or indirectly owned by him.

It also said that the Sindh High Court had passed an interim order on January 07 in the above-mentioned proceedings, restraining the parties involved.

“For creating any third-party interest in any manner whatsoever in relation to the company’s securities pledged by Zia Chishti and Sarah Jennifer Pobereskin wither them, till the next date of hearing,” the notification read.

On Monday, the total volume of the benchmark KSE-100 Index stood at 97.52 million shares, a decrease of 14.18 percent from 113.64 shares traded Friday, the last business session.

In terms of sectors, most of the negative contributions came from commercial banks, technology and communication, cement, fertilizer, and power generation companies which cumulatively added 453.74 points to the loss.

As far the volume leaders are concerned, Pakistan Petroleum topped the list with 13.79 million shares followed by CNERGY 12.37 million, TRG 9.84 million, Oil and Gas Development Company 9.51 million and k-Electric 8.82 million.

Shares of 93 companies included in the benchmark index were traded Monday out of which 75 recorded a fall, 15 registered an increase and three remained unchanged.

The shares of five worst performing companies during the day were: Pak-Gulf Leasing 14.52 percent, Shakarganj Limited 7.50 percent, TRG 6.10 percent, Mughal Iron and Steel 5.51 percent, and Kohinoor Textile Mills 5.25 percent.

On the other hand, it was the Punjab Oil Mills gained the most with a 4.50 percent increase in its share price followed by Pakistan Petroleum 3.87 percent, Nestle 3.70 percent, Oil and Gas Development Company 3.06 percent and Askari Bank 3.05 percent.

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