- Benchmark index plunges over 700 points to settle at 46,399.91 points.
- Rupee depreciation and delay in IMF programme prompts renewed stock selling as investors react with panic.
- Sectors contributing to performance include commercial banks, cement, technology, exploration and production and power.
KARACHI: Selling pressure persisted at the Pakistan Stock Exchange (PSX) for another session on Tuesday as the benchmark KSE-100 index fell over 700 points and closed below the 47,000-point mark.
The latest round of rupee depreciation and delay in the International Monetary Fund (IMF) programme prompted renewed stock selling as investors reacted with panic.
At close, the benchmark KSE-100 index recorded a decrease of 715.13 points, or 1.52%, to settle at 46,399.91 points.
A report from Arif Habib Limited noted a bloodbath session was witnessed today due to the further weakening of the Pakistani rupee against the US dollar, concerns on inflation, and the resumption of a foreign selling spree.
“The market opened on a bleak note after the news clocked in the morning that revival of $6 billion stalled IMF programme for Pakistan hinges upon stamped clearance of IMF’s two departments before forwarding [to] the Fund’s executive board,” it said.
The report added that the textile sector continued to remain under pressure for a second consecutive session over concerns on ending of subsidised gas supply.
Institutional activity remained on the sell-side due to redemptions from the mutual fund industry.
“Accumulation was witnessed in the banking sector as KIBOR rates have witnessed a sharp rise in the past one month, where the spread between the 6M KIBOR and policy rate has touched a high of 162 basis points, increasing from its average spread of 50bps,” it added.
Sectors contributing to the performance included commercial banks (-123 points), cement (-102 points), technology (-79 points), exploration and production (-63 points), and power (-46 points).
During the session, shares of 359 listed companies were traded. At the end of the session, 48 stocks closed in the green, 296 in the red, and 15 remained unchanged.
Overall trading volumes surged to 434.7 million shares compared with Monday’s tally of 364.9 million. The value of shares traded during the day was Rs14.3 billion.
Telecard Limited was the volume leader with 33.5 million shares, losing Rs0.02 to close at Rs19. It was followed by Fauji Foods with 28.8 million shares, losing Re1 to close at Rs3.28, and First National Equities with 25.35 million shares, gaining Re1 to close at Rs11.04.
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