The Pakistan Stock Exchange (PSX) experienced turbulence as concerns stemming from the recent rupee depreciation and the President’s stance on the Pakistan Army and Official Secrets Bills took centre stage. Starting optimistically with an intra-day high of 48,234.25 points, the KSE-100 index couldn’t sustain the momentum and fell prey to bearish sentiment by midday. This downturn was attributed to many factors, such as the $809 million current account deficit for July 2023, fears of power tariff hikes, and disappointing announcements related to the Refinery Policy.
Key Market Influences and Analyst Insights
Arif Habib Commodities CEO, Ahsan Mehanti, pinpointed the President’s alarming disclosure, the rupee’s slump, and other economic concerns as the major factors behind the bearish trend. He noted, “Stocks fell across the board amid uncertainty… weak earnings outlook amid expected further hike in power tariff and POL prices played a catalyst role in bearish close.” By day’s end, the KSE-100 index plummeted by 770.54 points, settling at 47,447.95.
Reports from Topline Securities described as “a day full of pessimism”, highlighting the stark reversal of the Current Account’s four-month surplus trend and the continued fall of the Pakistani Rupee against the US dollar. Furthermore, announcements related to the Refinery Policy and Circular Debt Management Plan have done little to assuage investor concerns.
Meanwhile, Arif Habib Limited (AHL) observed that major contributors to the decline included United Bank, Oil and Gas Development Company, and Habib Bank. JS Global’s analyst, Muhammed Waqar Iqbal, recommended investors see this dip as an opportunity, especially in construction and export-oriented sectors.
Trading Details and Foreign Influence
Trading volumes fell to 211.23 million shares from Friday’s 254.8 million. With a total value of Rs7.07 billion, 323 companies’ shares were traded. Of these, 50 stocks closed higher, 253 declined, and 20 remained unchanged. Notably, WorldCall Telecom led the day’s volume. On a rare positive note for the day, foreign investors emerged as net buyers, purchasing shares worth Rs388.9 million.
