Bears wrecked the Pakistan Stock Exchange (PSX) today as the benchmark KSE-100 index lost over 2,200 points in intraday trade after last week’s delay in the announcement of election results and news of the delay in the resolution of the circular debt management plan.
The benchmark KSE-100 index appeared bearish from the opening bell and immediately dropped into the red zone, losing 1,200+ points after trading resumed on Monday.
After opening trade at 62,943 points, the benchmark KSE-100 index crashed to 61,795 at 11 AM. At 11:05 AM, it clocked in at 61,740, down by 1.91 percent or 1,203 points.
At 2:55 PM, it clocked in at 60,650, down by 3.6 percent or 2,292 points.
It settled at 61,065, down 2.98 percent or 1,878 points.
Besides the massive election fiasco that ensued last week, investors also held back equity intakes amid reports that the International Monetary Fund had still not approved Pakistan’s circular debt reduction and tariff rationalization plans.
The possibility of a coalition government coming back poses concerns for a big chunk of investors.
CEO Alpha Beta Core Khurram Schehzad told ProPakistani that, unlike past trends, KSE-100 went down in two consecutive sessions after elections, where values at the PSX eroded sharply.
Each session has posted a loss in market capitalization of PKR 214 billion ($767 million), with a cumulative loss in two sessions at PKR 427 billion ($1.53 billion).
Historically, PSX showed jubilance post elections where the market used to go up 2-3 percent in the first two days post-elections (2008, 2013, 2018 elections), while this time around, the market has lost 4.7 percent post-elections.
The trend may continue with investor confidence losing further, however, the sooner a concrete decision is made/announced by the winning political parties with clarity on the economic team with a plan and direction towards addressing the key economic challenges, the market should take a sharp recovery.
Top Volumes
Overall, massive selling pressure expanded to the larger energy and power sectors. KEL, OGDC and PPL were top losers at the time of press.
The highest participation was witnessed in K-Electric Limited (PSX: KEL) with over 50.3 million shares traded, followed by Worldcall Telecom Limited (PSX: WTL) and Oil & Gas Development Company Limited (PSX: OGDC). The scrips had 34.6 million shares and 14.9 million shares traded, respectively.
| SCRIP | PRICE | HIGH | LOW | CHANGE | VOLUME |
|---|---|---|---|---|---|
| KEL | 4.21 | 4.63 | 4.11 | -0.44 | 50,323,573 |
| WTL | 1.21 | 1.28 | 1.19 | -0.07 | 34,623,947 |
| OGDC | 134.2 | 141.0 | 134.2 | -10.88 | 14,939,483 |
| HASCOL | 6.96 | 7.66 | 6.8 | -0.68 | 13,219,000 |
| PPL | 108.02 | 113.0 | 108.02 | -8.76 | 12,883,621 |
| FFL | 8.9 | 9.81 | 8.81 | -0.95 | 12,817,261 |
| PAEL | 21.5 | 23.0 | 21.01 | -1.3 | 12,296,560 |
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its still high,,
Do you even understand how to read stock market index?
everything will be alright as nawaz comes