Bloodbath at PSX As KSE-100 Falls by Over 1,370 Points Amid IMF Delay

The Pakistan Stock Exchange (PSX) saw a dramatic sell-off during the trading hours, with the benchmark KSE-100 index losing over 1,400 points in intraday trading amid another delay in the release of a $1 billion bailout from the International Monetary Fund (IMF).

After opening trade at 39,720.75 points, the market showcased bearish sentiments, with the KSE-100 index losing over 1,400 points in the day. Gaining 221.53 points early on, the benchmark KSE-100 index recorded an intraday high of 39,942.28. It then lost 1,432.94 pts to a record intraday low of 38,287.81. The KMI 30 index plunged by 3,132.34 pts closing at 64,821.48. While the KSE All share index fell by 842.43 pts settling at 25,991.65.

According to Arif Habib Ltd, this is the largest day-to-day decline after June 24th, 2022. At the end of the day, the KSE-100 index went down by 1,379 pts (3.5%) and closed at 38,342.21 points.

Moreover, this is the first time since July 2020 that the index has gone below 39,000.

Independent economic Analyst A A H Soomro told ProPakistani,

IMF delay coupled with political uncertainty is a sentiment killer. Plus there is an imminent interest rate hike that would delay the rerating. However, dollar inflows and IMF resumption will revamp the pessimism sharply.

The overall market volumes surged from 105.39 million shares in the previous session to 204.64 million shares. Companies showing the highest contribution to the volume chart included K-Electric Limited (KEL -8.81 percent), Worldcall Telecom Limited (WTL -3.51 percent), and Sui Northern Gas Pipelines Limited (SNGP -5.46 percent). The scrips had 29.06 million shares, 14.48 million shares, and 9.67 million shares traded, respectively.

According to Capital Stake, sectors painting the benchmark KSE 100 index in red included the Technology and Communication sector (242.53 points), Oil and Gas Exploration sector (237.60 points), and the Banking sector (196.58 points). Company-wise, Systems Limited (SYS 146.57 points), Pakistan Petroleum Limited (PPL 85.20 points), and Lucky Cement Limited (LUCK 85.15 points), were top negative contributors.

The Cement sector lost 6.09 percent in its cumulative market capitalization. Lucky Cement Limited (LUCK 6.79 percent), Bestway Cement Limited (BWCL 2.59 percent), Kohat Cement Company Limited (KOHC 6.92 percent), and Fauji Cement Company Limited (FCCL 4.28 percent), all closed in the red.

Top Volumes

Equity markets around the globe showed a mixed trend. WTI crude oil price fell by 0.02 percent to $80.09 and then below the level. While Brent crude oil price is back above $85.