Pakistan Stock Exchange (PSX) on Thursday witnessed panic selling amid as investors weighed on the reported International Monetary Fund (IMF) recommendations to devalue Pak Rupee (PKR) and raise the interest rate.
On a day of selling spree, the market closed 473.07 points down at 40087.12. The market opened in the green zone and gained some 38 points before the crash. After that, there was an all-around plunge and the market never recovered again.
Analysts opined that the reported IMF recommendations during Pakistan’s economy assessment with Pakistani officials triggered the selling. They said that the IMF delegation, headed by its Washington-based mission head, in negotiation with Pakistani side had recommended further devaluation of PKR to the level of Rs145 a dollar to fix the external account challenge.
Senior analyst and Chief Executive Officer (CEO) Arif Habib Corp told ProPakistani that the market witnessed panic selling on economic uncertainty as investors weighed IMF suggestions over higher interest rate and rupee depreciation.
He opined that weak earnings outlook for the auto sector after the restriction imposed on non-filers under Finance Bill (Amended), dismal data on oil sales and rupee volatility against dollar played a catalyst role in bearish close.
He added that the lack of clarity on part of the government whether it is going for IFM programme or not is also costing its toll on the market.
On Thursday, trading on the shares of some 365 companies was held. Out of these, shares price of 67 companies increased while the share price of 272 companies decreased. Price of 26 companies remained unchanged.
Corton Ind was the market leader in term of per share gain followed by Wah-Noble. The share of Corton Ind increased by Rs 12.65 to close at Rs 265.65 while the share price of WAh-Noble surged by Rs 11.43 to close at Rs 240.21.
Indus Motor Corp was the biggest loser of the day followed by Service Industries Ltd. The share price of Indus Motor Corp plunged by Rs 33.67 per share to close at Rs 1337.50 while the share price of Service Industries Ltd fell by Rs32.22 per share to close at Rs 700.78.