Hostility on border keeps market participants under stress, 100-index slips below 39,000 pts

February 26, 2019 (MLN): The ongoing political tension between India and Pakistan has not only led towards losses in the Indian stock market, but has also pushed Pakistan’s benchmark KSE – 100 index below the 39,000 point milestone, which the index had stayed clear of since the beginning of this year (2019).

After opening lower, the Indian stock markets - Sensex and Nifty – observed extended losses throughout the day, following violation of Line of Control (LoC) by Indian Air Force (IAF), Business Today of India reported.

Pakistan’s 100 – index had crossed over the 39,000 points mark on January 8, 2019 and had maintained its position above this point up until today. It has cumulatively lost over a thousand points in the last two sessions alone, of which 785 points were shed in today’s trade.

The index closed today’s trade at 38,821 points, recording a decline of 1.98% over last trading session.

According to data documented by Mettis Global Private Limited, most of the sectorial indices traded in the red region today, with Oil & Gas Exploration Companies and Commercial Banks incurring the heaviest losses and dragging down key indices alongside.

Losses on the blue chips including PPL (-2.8%), OGDC (-2.61%), LUCK (-3.22%), ENGRO (-1.56%), MCB (-1.6%), POL (-9.97%) and UBL (1.92%), steered the benchmarks index southwards.

A total of 104.7 million shares were traded at today’s trading session at a value of PKR 5.4 billion. 83 of the companies whose shares were traded today, recorded a decline in share prices, while only 8 companies recorded a rise.

On the other hand, the broader KSE All Share shed 450 points in today’s trade to conclude the session at 28,342 points, down by 1.56% against yesterday’s trade.

Within this index, 161.9 million shares were traded at PKR 6.95 billion, whereas 276 companies whose shares were traded observed a decline in share prices today.

Meanwhile, Pakistani Rupee (PKR) depreciated by 30 paisa during the first session of interbank market today, whereas during its second session, it crossed the PKR 139-per-USD-level, for the first time since November 30, 2018, when the central bank had allowed the currency to devalue.

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