Connect with us

Business

Political uncertainty rattles Pakistan stocks, KSE-100 plummets over 1,200 points

Published

3 years ago

on

  • PSX witnessed bloodbath session as rising political temperature amid ongoing constitutional crisis raises alarm in stock market.
  • KSE-100 index seesaws as investors struggle to anticipate impact of actions being taken by authorities.
  • Analyst says it is “difficult” to comment on outlook of market.

KARACHI: The Pakistan Stock Exchange (PSX) on Monday came under intense selling pressure as the rising political drama rattled investors and pushed the benchmark index deep into the red with a drop of over 1,200 points.

The rising political temperature in the country amid the ongoing constitutional crisis raised alarm in major sectors of the economy as well as the stock market, which fell below 44,000-point mark.

President Arif Alvi, on the suggestion of Prime Minister Imran Khan, dissolved the National Assembly in an attempt to avoid voting on the no-confidence motion tabled against him [PM Khan].

The benchmark KSE-100 index seesawed as investors struggled to anticipate the impact of actions being taken by the authorities in the wake of the political turmoil.

At the close, the KSE-100 index plummeted 1,250.06 points, or 2.77%, to settle at 43,902.05 points.

Benchmark KSE-100 index intra-day trading curve. — PSX data portal
Benchmark KSE-100 index intra-day trading curve. — PSX data portal

Speaking to Geo.tv, BMA Capital Management Executive Director Saad Hashemy said that the political uncertainty is taking a toll on the market.

“Investors are always concerned about the economic issues being addressed,” he said, adding that till there is clarity on the political front the market will remain volatile on fears of economic concerns.

Regarding the market’s direction in the ongoing week, the analyst said that it is “difficult” to comment on the outlook. However, Hashemy added that the next two to three days are important as market players are closely eyeing how things are unfolding and developments during this period will give the market a direction.

A report from Arif Habib Limited noted that the benchmark KSE-100 index experienced a “blood bath” session throughout the day due to political unrest. 

“A significant decline was observed in the volumes of the market as well,” it stated, adding that across the board selling was witnessed. 

Main board volumes remained subdued. On the flip side, hefty volumes were recorded in the third-tier stocks.

Sectors contributing to the performance included banks (-324.5 points), cement (-252.9 points), technology and communications (-100.6 points), exploration and production (-93.5 points) and power (-69.2 points).

Shares of 305 were traded during the session. At the close of trading, 26 scrips closed in the green, 268 in the red, and 11 remained unchanged.

Overall trading volumes plunged to 170.48 million shares compared with Friday’s tally of 389.11 million. The value of shares traded during the day was Rs5.49 billion.

Telecard Limited was the volume leader with 17.39 million shares traded, losing Rs0.57 to close at Rs13.86. It was followed by K-Electric with 16.01 million shares traded, losing Rs0.18 to close at Rs2.92, and TPL Properties with 12.55 million shares traded, losing Rs1.56 to close at Rs19.26. 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Pakistan suffers a loss of millions due to inoperable airports.

Published

1 day ago

on

By

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

Within the last 12 to 14 months, the minister saw a considerable improvement in macroeconomic stability. With the help of foreign exchange reserves sufficient to cover two months’ worth of imports, Pakistan steadied its currency, decreased its current account deficit to less than $1 billion, and produced a primary surplus.

Strong remittances, expanding exports, and a drop in inflation from 38% to 6.9% have all contributed to the consolidation of these benefits, according to Muhammad Aurangzeb. Companies have also profited from the insurance rate reduction.

Even if Pakistan’s credit rating has improved, more work needs to be done to bring it up to at least a B-. Both on the debt and equity sectors, he claimed, institutional flows were returning to the nation.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Continue Reading

Business

Pakistan’s economy is getting better, according to Muhammad Aurangzeb

Published

1 day ago

on

By

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

thus,Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

Within the last 12 to 14 months, the minister saw a considerable improvement in macroeconomic stability. With the help of foreign exchange reserves sufficient to cover two months’ worth of imports, Pakistan steadied its currency, decreased its current account deficit to less than $1 billion, and produced a primary surplus.

Strong remittances, expanding exports, and a drop in inflation from 38% to 6.9% have all contributed to the consolidation of these benefits, according to Muhammad Aurangzeb. Companies have also profited from the insurance rate reduction.

Even if Pakistan’s credit rating has improved, more work needs to be done to bring it up to at least a B-. Both on the debt and equity sectors, he claimed, institutional flows were returning to the nation.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Continue Reading

Business

Remittances from Workers

Published

2 days ago

on

By

In September of this year, the State Bank of Pakistan reported that remittances from overseas Pakistanis amounted to 2.8 billion dollars, reflecting a 29% increase compared to the remittances received in September of the previous year.

The SBP reports that, with a cumulative inflow of 8.8 billion US dollars in the first quarter of the financial year, workers’ remittances increased by 38.8 percent compared to the first quarter of the previous year.

Remittance inflows in September 2024 were primarily derived from Saudi Arabia at $681.3 million, the United Arab Emirates at $560.3 million, the United Kingdom at $423.6 million, and the United States of America at $274.9 million.

Continue Reading

Trending