PSX ends in green zone after volatile session amid interest rate hike fears

Political and economic uncertainty led to another day of losses for the Pakistan Stock Exchange where the KSE-100 Index was down 169.13 points (0.42 percent) and closed at 39,669.20 on Friday.

It means the benchmark index dipped by 1,632.28 points during the week which represents a 3.95 percent loss.

A combination factors – the political affairs especially in Punjab, weak macroeconomic indicators, poor overall economic situation, higher policy rate, and delay in international funding is drastically affecting the Pakistan Stock Exchange and have crushed investors’ confidence.

Today’s losses came after the international ratings agency S&P Global downgraded Pakistan’s long-term sovereign credit rating to “CCC+” from “B” due to high external risk, which has forced investors to kept away from the market.

It is expected that the economy of country in 2023 will remain in pressure due to recent floods, Russia-Ukraine war, high energy prices, a depleted foreign exchange reserves, less export, rupee depreciation, and tighter global financial conditions.

During the Friday’s session, the KSE-100 Index made an intraday high of 39,938.32 and a low of 39,497.73.

The total volumes of the KSE-100 Index stood at 76.13 million shares, an 11.73 percent decrease from 86.25 million shares traded Thursday.

Shares of 91 companies were traded on Friday, of which 60 recorded a fall, 26 registered an increase and five remained unchanged.

In terms of sectors, most of the negative contributors were technology, cement, and fertilizer which negatively contributed 199.11 points. But the power generation companies closed the session positively, gaining 58.95 points.

Meanwhile, the volume leaders on the benchmark index were Hub Power Company 8.32 million, Pakistan Petroleum 6.85 million, PRL 6.11 million, Worldcall Telecom 5.34 million and Dewan Farooque Motors 5.22 million.

The top five gainers in terms of share price were Pakistan Petroleum 5.16 percent, Faysal Bank 4.80 percent, Pakistan Services Limited 4.75 percent, The Bank of Punjab 3.51 percent and Pak Suzuki Motor Company 3.48 percent

However, the stocks that emerged as net losers during the day included: Roshan Packages 8.23 percent, Pak Electron 5.05 percent, Ghani Chemical Industries 3.99 percent, First Capital Securities 3.52 percent and Waves Home Appliances 3.32 percent. 

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