February 12, 2024 (MLN): The benchmark KSE-100 index extended its intraday decline to 1,289 points, or 2.05% to trade near 61,654 by 11:09am as investors remained concerned amid uncertainty on the political front.
The total volume of the KSE-100 index was 77.11 million shares.
Pressure is mounting as investors lose confidence in the local stock market due to the election outcome pointing towards increased political instability.
This casts a darker shadow over growth and prospects for securing International Monetary Fund (IMF) aid the country needs to avoid default, said Bloomberg.
Atif Mian, a renowned Pakistani-American economist stated that the country is facing bankruptcy, with every macro fundamental indicating a crisis.
Pakistan’s economy has consistently lagged behind globally. Last year was one of the worst, with the economy actually contracting, he said.
The economist stressed, "Every macro fundamental is flashing red; inflation, growth, debt, investment, to name a few."
Experts said the market needs clarity on the political front.
“The election was on February 8 and we still don’t know who is forming the government,” Bilal Khan, head of international sales at Karachi-based brokerage Arif Habib Ltd told Bloomberg.
Meanwhile, the government on Sunday dismissed the negative perception that was being created regarding the Circular Debt Reduction and Tariff Rationalization Plans.
Despite the clarification, Oil & Gas Exploration Companies sector was the biggest drag for the KSE-100 index, stripping off nearly 462 points.
Other sectors contributing negatively to the index were Cement with 122.41, Oil & Gas Marketing Companies with 104.56, Power Generation & Distribution with 98.41, and Fertilizer with 83.01 points.
Companies that dragged the index lower were OGDC with 213, PPL with 173.93, HUBC with 67.31, MARI with 60 and PSO with 57.96 points.
On the other hand, companies that added points to the index were COLG with 18.65, FFC with 10.62, SRVI with 10.32, SHFA with 2.81, and INDU with 1.73 points.
In the broader market, the All-Share index was at 41,781.70 with a net loss of 799.91 points.
| Company | Volume |
|---|---|
| KEL | 19,382,776 |
| OGDC | 14,623,851 |
| PPL | 9,861,656 |
| HASCOL | 6,687,000 |
| WTL | 5,808,948 |
| CNERGY | 4,601,760 |
| PRL | 3,959,450 |
| FFL | 3,248,965 |
| PIAA | 3,192,000 |
| PAEL | 3,126,655 |
To note, the KSE-100 has gained 20,202 points or 48.74% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative decrease of 796 points, equivalent to 1.28%.
Copyright Mettis Link News
Posted on: 2024-02-12T11:10:47+05:00
