Market watch: Poor economic outlook pulls KSE-100 down
Shares of 328 companies were traded. At the end of the day, 134 stocks closed higher. PHOTO: REUTERS
The bearish spell continued at the Pakistan Stock Exchange on Tuesday as a gloomy macroeconomic outlook dented investor interest.
The benchmark KSE-100 index, after a rollercoaster ride, fell for a third consecutive session and offloaded 163 points.
News report relating to the surge in circular debt in the first two months of current fiscal year amid persistent depreciation of the rupee against the US dollar impacted the confidence of market participants.
In addition to that, speculation about a potential hike in prices of petroleum products added to the fears of market players and triggered panic selling.
Earlier, trading kicked off with minor ups and downs, however, the index fell steadily after midday. Cherry-picking by investors, later in the session, erased some of the losses.
At close, the benchmark KSE-100 index recorded a decrease of 190.40 points, or 0.42%, to settle at 45,227.80.
Arif Habib Commodities Managing Director and CEO Ahsan Mehanti, in his report, said that the stock market closed lower amid pressure owing to economic uncertainty and concern over the surging circular debt, which neared Rs2.3 trillion.
“Falling rupee, foreign outflows and uncertainty about the outcome of Pakistan-IMF talks played the role of catalysts in bearish close of the market,” the analyst said.
Overall trading volumes decreased to 162.8 million shares compared with Monday’s tally of 165.9 million. The value of shares traded during the day was Rs5.6 billion.
Shares of 328 companies were traded. At the end of the day, 134 stocks closed higher, 179 declined and 15 remained unchanged.
Hum Network was the volume leader with 24.9 million shares, gaining Rs0.14 to close at Rs6.77. It was followed by Ghani Global Holdings XB with 8.3 million shares, gaining Rs0.25 to close at Rs29.89 and Lotte Chemical with 8 million shares, gaining Rs0.04 to close at Rs15.49.