August 31, 2023 (MLN): The benchmark KSE-100 index continued its downward trajectory on Thursday, losing 560 points or 1.21% DoD to trade at 45,690.50 [11:10 am PST].
Pressure comes through political uncertainty surrounding the general elections, which is causing turbulence in local markets.
The analyst fraternity is of the view that the market went down amid the continuous depreciation of PKR against USD and likely hike in interest rates owing to high inflation.
Additionally, Moody’s assertion for weak infrastructure and governance issues and concerns for unresolved circular debt crises in the power sector played a catalytic role in the bearish close.
Market participants are also closely monitoring the upcoming CPI data due on Friday, which will be pivotal for the next MPC meeting on September 14 wherein experts are of a view of a rate hike.
Sector-wise, the KSE-100 Index was let down by Commercial banks with 214.60, Cement with 62.68, Power generation and distribution with 48.39, Fertilizer with 40.57, and Oil and gas Marketing companies with 25.91 points.
The most points lost to the Index were by HUBC which shed 45.92 points followed by UBL with 38.66 points, MEBL with 37.50 points, and MCB with 34.52 points.
It's worth noting that the banking sector has experienced robust earnings and spreads. Nevertheless, the sector still ranks among the top losers in the index.
