Pakistan stocks shed 462 points as political worries deepen
PSX faced bloodbath as investors pulled massive investments out of the stocks, analysts say
October 28, 2022
- Analysts say market was under pressure.
- Advise wait-and-see policy down the line.
- Political clamouring panicking investors.
KARACHI: Hit by the political tumult, stocks had a hard landing on Friday as PTI launched its long march, seeking early polls from the government, which is juggling between fighting the opposition and shoring up the country’s economy with little success.
The KSE-100 shares index, the benchmark of the Pakistan Stock Exchange (PSX), lost 462.52 points or 1.11% to close at 41,140.33.
Arif Habib Ltd in a note said the PSX witnessed a bloodbath session. “The index plunged 487.67 points in intraday trade owing to the prevailing political clamouring,” the brokerage said.
It said the market remained under pressure throughout the day as investors opted to stay on the sideline during both sessions.
“Volumes in the mainboard declined, whereas decent volumes were recorded in the 3rd tier stocks,” the report said.
The index took major hits from cement (-74.6 points), exploration and production (-74.3 points), technology and communication (-66.7 points), oil and gas marketing companies (-46.8 points), and power generation and distribution sectors (-39.8 points).
Volumes shrank from 203.5 million shares to 177.8 million shares, while the average traded value reduced by 27.2% to $20.9 million as against $28.7 million. With a turnover of 25.7 million shares, WorldCall Telecom emerged as the most traded stock on Friday.
Out of a total of 322 traded shares, 87 went advanced, 220 retreated, and 15 maintained the status quo.
Stocks that contributed significantly to the volumes included WorldCall Telecom, K-Electric, Cnergyico PK Limited, Fauji Fertiliser, and Pakistan Refinery Ltd.
Topline Securities said stocks largely remained under pressure during the trading session citing political uncertainty.
“Major positive contribution to the index came from Faysal Bank Limited, Javedan Corporation Limited, Systems Limited, Fauji Fertiliser Company, and Honda Atlas Cars, as they cumulatively contributed 40 points to the index,” the brokerage said.
It added that on the other hand Engro Corporation, TRG Pakistan, Pakistan State Oil, Pakistan Petroleum Ltd, and Lucky Cement lost value to weigh the index down by 367 points.
JS Research said selling pressure continued at the apex bourse. “Going forward, we recommend investors to stay cautious and avail the current downside as an opportunity to buy blue-chip stocks,” the JS analysts said.
