October 05, 2018 (MLN): The stock market was in abysmal pits during the last trading session of the week, following IMF’s stance that Pakistan was facing significant economic challenges, with declining growth, high fiscal and current account deficits, and low levels of international reserves.
The policies proposed by the IMF team further deteriorated hopes of the participants, as they included increase in interest rates (Policy rate up 275 basis points in 2018), Pak Rupee devaluation (local currency has weakened by 18% in 2018), increase in gas tariff by average 35%, proposed increase in power tariff and recent budgetary measures announced by the new govt.
The panic situation within the market was also prompted by an alarming plunge in foreign exchange reserves held by the central bank, Executive Director Research of Insight Mr. Zeeshan Afzal told Mettis Global.
Furthermore investor’s anticipation towards dollar devaluation also generated negative sentiments
While the index experienced an atrocious trading activity this whole week, it went over the line during today’s session as the closing dipped from 40,000 points, ultimately closing in at 39,226 points.
The stocks of Commercial banks (down by 206 points), Oil and Gas Exploration Companies (down by 118) and Cement (down by 93 points) largely influenced the index as they emerged as the major loss bearing contributors.
The losses on UBL (-3.63%), PPL (-2.04%), HBL (-1.95%) and OGDC (-2.07%) brought about most of the volatility on the index.
Engulfed within a range of massive 1106 points, the index touched an intraday high of 40,136 points and an intraday low of 39,030 points.
Correspondingly, the broader KSE All Share lost 602 points by the day end, closing in at 28,795 points. An intraday high of 29,433 points was recorded for the KSE All Share index, while the intraday low sunk to 28,746 points today.
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