KARACHI:
The Pakistan Stock Exchange (PSX) lost more ground on Wednesday as early optimism gave way to extensive selling in the second half of the trading session. At close, the benchmark KSE-100 index recorded a loss of 941.03 points, or 0.63%, and settled at 147,494.03.
Concerns over severe flooding in the northern regions of the country triggered a shift in investor sentiment, leading to a sharp downturn in equities.
The index opened on a positive note, climbing steadily during morning hours and reaching the intra-day peak of 149,238 points. However, the upbeat momentum could not be sustained as news of flood devastation began circulating in the mid-session.
This reversal triggered aggressive offloading of stocks across key sectors, pushing the index sharply lower. The day’s low was recorded at 147,337, marking a sharp contrast to the earlier highs. It was the fifth straight day of losses for the benchmark index.
Topline Securities, in its report, wrote that the local bourse extended its losing streak as contract rollover week jitters kept investors cautious while flood warnings from NDMA further dampened sentiment. The authority highlighted a “very high to exceptionally high” flood risk in Lahore and parts of Punjab following heavy rains and release of water by India, with army aid sought in six districts.
The KSE-100 index closed lower by 941 points, slipping beneath the 147,500 mark. Despite an early rebound, selling pressure and risk aversion weighed on the benchmark index, Topline said.
Gains in Meezan Bank, Engro Holdings and MCB Bank added 137 points to the index; however, they were overshadowed by declines in Habib Bank, Fatima Fertiliser, Service Industries, National Bank and Mari petroleum, which dragged the index down by 331 points.
Looking ahead, heightened rollover activity and prevailing flood worries are likely to keep the market volatile, with investors expected to remain cautious in the coming sessions, Topline predicted.
Arif Habib Limited (AHL) reported that the index extended its losing streak to a fifth consecutive session, sliding into the 147.5k range with some panic in the second half following news of major flooding in the north of the country.
Some 21 shares rose while 78 fell, where Meezan Bank (+0.95%), Engro Holdings (+0.61%) and MCB Bank (+0.79%) contributed the most to index gains. On the other side, Habib Bank (-1.38%), Fatima Fertiliser (-5.21%) and Service Industries (-6.42%) were the biggest drags.
Among financial news, AHL said, Pakistan plans to return to international capital markets either this year or next year by most likely floating Panda bonds, as mentioned by Finance Minister Muhammad Aurangzeb, who will be accompanying Prime Minister Shehbaz Sharif to attend the SCO conference in China next week. Additionally, the government is set to impose a 40% tax on the import of used cars.
Meanwhile, heavy monsoon rains have triggered flash floods across Pakistan that prompted PM Sharif to hold an emergency meeting. The meteorological department has warned of intense rainfall in the next 12 to 24 hours across Punjab. Sialkot, a manufacturing hub in the province, recorded 363.5mm of rains in the past 24 hours, the most in 49 years, AHL added.
Overall trading volumes increased to 856.7 million shares compared with Tuesday’s tally of 665.4 million. Traded value stood at Rs29.3 billion.
Shares of 477 companies were traded. Of these, 129 stocks closed higher, 312 dropped and 36 remained unchanged. Pace Pakistan topped the volumes chart with trading in 87.8 million shares, rising Rs1 to close at Rs7.06.
