Negative sentiment prevailed at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index ended the first session of the week with a fall of 1.23% on Monday, while volumes declined from the previous session.
The benchmark KSE-100 Index opened in the green, but bears gained control and the market remained at the losing end.
At close on Monday, the KSE-100 finished with a decline of 502.76 points or 1.23% to settle at 40,504.76.
Across-the-board selling was witnessed, as index-heavy sectors including automobiles, commercial banks, chemicals, cement and technology traded in the negative.
An analyst, speaking on condition of anonymity, said the market was expecting an announcement from Saudi Arabia pertaining to funding, but that has not happened yet. “This is leading to apprehensions,” said the expert.
Last week, Finance Minister Ishaq Dar claimed that friendly countries i.e. Saudi Arabia have announced their support which will help improve depleting forex reserves in the country.
He hoped the government will also complete the ninth review of the International Monetary Fund (IMF) programme that will pave way for Pakistan to receive the next tranche of the loan.
Moreover, announcements made by TRG Pakistan and Lotte Chemicals is also leading to negative sentiment, said the expert.
On Monday, The Resource Group (TRG) International Limited reported that it had filed a suit against JS Bank Limited, JS Global Capital Limited, DJM Securities Limited and others in the Sindh High Court, over the violation of a Stock Purchase Agreement (SPA).
Meanwhile, Novatex Limited announced it has withdrawn its Public Announcement of Intention (PAI) for the acquisition of Lotte Chemical Pakistan Limited, Lotte announced in a notice to the PSX.
Indices slipped lower and lower for the most part of the day while volumes decreased from last close, said Capital Stake in a report.
“News of foreign exchange reserves reaching an all-time low of $4.5 billion caused a downward trend in the market,” said the report.
As per Arif Habib Limited (AHL), market sentiment remained negative due to current political and economic instability. “The notification about TRG judicial proceedings further escalated the bearish scenario pushing the index down by 570.70 points during intraday,” it said.
On the economic front, the rupee registered a marginal loss against the US dollar and fell for the 14th straight session, depreciating 0.12% or Re0.27 on Monday to close at 227.41.
Sectors driving the benchmark index lower included, banking (162.84 points), technology and communication (107.30 points) and cement (74.05 points).
Volume on the all-share index declined to 163 million from 182 million on Friday. However, the value of shares traded increased to Rs6.89 billion from Rs6.79 billion recorded in the previous session.
Pak Refinery was the volume leader with 17.57 million shares, followed by Pak Petroleum with 13.97 million shares, and Cnergyico PK with 12.37 million shares.
Shares of 328 companies were traded on Monday, of which 62 registered an increase, 247 recorded a fall, and 19 remained unchanged.
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