Political uncertainty leads to 330 points slump in KSE-100 Index

On Wednesday, Pakistan stock market opened in bullish mood in the morning as the KSE-100 index crossed 45,000 mark. The main reason behind this was the hope of government and Independent Power Producers (IPPs) reaching an agreement on the payment issue. The oil sector was also in demand following higher prices in the international market.

The Karachi Share Index (KSE-100) gained 502.99 points (1.13 per cent) after closing at 45,153.42 points against the previous closing of 44,650.43 points. The market went up to 45,194.63 points during intra-day trading, while recorded as low as 44,650.43 points.

Trading volume decreased to 664.5 million shares today as compared to 582.36 million traded in the previous session, according to PSX website data. The daily traded value increased to Rs 24.696 billion from Rs 24.235 billion in the previous session, the data said.

The market opened on a bullish note, tracking the sharp overnight gains in international oil prices which kept the index heavy oil & gas exploration companies in the limelight. Along with upcoming banks results with dividend expectations. The cement sector also stretched gains after the federal cabinet ratified the extension in fixed tax scheme for the construction sector till June 30, 2021.

IPPs also tempered some gains as news report highlighted the government-IPPs talks are moving in the right directions. While IPPs’ demand of 50% upfront payment of dues in contrast with the government offer of 1/3 upfront payment. The hopes among the investors major sectors kept supporting the market.

In term of volumes, the overall market traded 813 million shares, up 14% from the previous session where BYCO recorded the highest volumes for the day with 98 million shares traded followed by KAPCO with 31 million shares traded and HASCOL 29 million shares traded. HUBC contributed the most to the index decline with 0.97% loss while MEBL provided the biggest boost the the benchmark with 7.50% gains.

The share price of Pakistan Tobacco increased by Rs 99.98 to Rs 1699.98 while Rafan Maize gained Rs 51 to Rs 9,850. Similarly, Tandlianwala Sugar lost Rs 13.52 today to close at Rs 166.86 while Shezan Inter. lost Rs 12 to close at Rs 336.

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