PSX begins week with 181-point loss

• Benchmark KSE-100 sheds over 180 points amid negative triggers and an uncertain economic, political outlook.
• Rupee depreciation coupled with uncertainty regarding the IMF programme dented investors’ sentiment.
• Sectors contributing to the performance include technology, exploration and production, banks, pharmaceutical and engineering.

KARACHI: The bears staged a comeback at the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 shed over 180 points amid negative triggers and an uncertain economic and political outlook.

The KSE-100 index endured a range-bound session, which ended on a bearish note. Selling pressure was noted in the technology, banking and oil sectors.

Moreover, rupee depreciation against the US dollar coupled with uncertainty regarding the International Monetary Fund (IMF) programme dented investors’ sentiment.

Expectations of a gas price hike coupled with higher international oil prices kept inflationary concerns intact and market gains in check during the session.

At close, the benchmark KSE-100 index recorded a decrease of 180.76 points, or 0.38%, to settle at 47,115.04 points.

A report from Arif Habib Limited noted that the market continued to remain range-bound today as inflationary concerns heated up among investors after the statement came from Adviser to the Prime Minister on Finance Shaukat Tarin that IMF has asked the government to further hike the levy on petroleum products.

“Textile sector remained under pressure as Ministry of Energy (Petroleum Division) had already moved a summary to the federal cabinet for ending subsidised gas supply to the industrial sector including captive power plants immediately,” it said.

The report added that the activity continued to remain side-ways as the market witnessed hefty volumes in the third tier stocks.

On the flip-side, institutional activity stayed lacklustre. In the last trading hour, profit-taking was witnessed across the board mainly led by the technology sector.

Sectors contributing to the performance include technology (-45 points), exploration and production (-28 points), banks (-26 points), pharmaceutical (-20 points) and engineering (-19 points).

During the session, shares of 368 listed companies were traded. At the end of the session, 125 stocks closed in the green, 228 in the red, and 15 remained unchanged.

Overall trading volumes surged to 364.9 million shares compared with Friday’s tally of 469.9 million. The value of shares traded during the day was Rs12.8 billion.

Hum Network Limited was the volume leader with 39.6 million shares, gaining Rs0.23 to close at Rs39.6. It was followed by Telecard Limited with 30.1 million shares, gaining Rs0.39 to close at Rs19.02, and First National Equities with 26 million shares, losing Rs0.31 to close at Rs10.04.