Monday Apr 04, 2022
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.
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.