The bears made a comeback on the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE100 lost more than 180 points due to positive triggers and uncertain economic and political outlook.
The KSE100 index supported a range session that ended on a bearish grade. Selling pressure was seen in the technology, banking and oil sectors. In addition, the depreciation of the rupee against the US dollar, coupled with uncertainty over the International Monetary Fund (IMF) program, hurt investor confidence.
Expectations of a rise in gas prices combined with higher international oil prices kept inflation worries and market gains at bay during the session. At the close of trading, the benchmark KSE100 recorded a decrease of 180.76 points or 0.38% to 47,115.04 points.
A report by Arif Habib Limited found that the market remained slack today as inflation worries mounted among investors after Treasury Secretary Shaukat Tarin issued a statement that the IMF had asked the government to suspend the tax Increase oil further.
“The textile sector remained under pressure because the energy ministry (petroleum department) had already submitted a summary to the federal cabinet in order to immediately end subsidized gas supplies to industry, including the Group’s own power plants,” he said.
The PSX report added that activity continued to move sideways as the market saw large volumes of third-tier stocks. On the other hand, institutional activity remained lackluster. There was general profit-taking in the last hour of trading, led mainly by the technology sector. Sectors contributing to performance are technology (45 points), exploration and production (28 points), banks (26 points), pharmaceuticals (20 points) and mechanical engineering (19 points). During the meeting, shares of 368 listed companies were traded.
At the end of the session, according to PSX, 125 stocks closed in green, 228 in red and 15 remained unchanged. Total trading volume rose to 364.9 million shares from 469.9 million on Friday. The value of the shares traded during the day was 12.8 billion rupees. Hum Network Limited was the volume leader with 39.6 million shares, gaining Rs 0.23 to close at Rs 39.6.It was followed by Telecard Limited with 30.1 million shares that gained 0.39 rupees at a closing price of 19.02 rupees and First National Equities with 26 million shares that lost 0.31 rupees and closed at 10.04 rupees.
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