KSE-100 down 258 points as volumes increase at PSX

A day after recording the best performance of the year, stocks took a hit as the benchmark KSE-100 Index closed a volatile session on Tuesday in the negative territory by losing 258 points, while volume and value improved from the last session.

Accumulating 427.55 points, the benchmark index recorded an intra-day high of 45,757.60. However, in the second half of the session, the index failed to sustain the gains, dropping to day’s low of 44,727.96.

The benchmark KSE-100 Index on Tuesday closed with a drop of 257.67 points, a decrease of 0.57%, to 45,072.38 points.

Best day of 2021: KSE-100 registers 2.76% increase

On a monthly basis, the index was down by 1,112 points, marking a negative return of 2.4%. The negative sentiments were fueled by a hike in the policy rate, an alarming current account deficit, and net foreign selling.

As per Arif Habib Limited (AHL), negative sentiments were fuelled by: SBP increasing the policy rate by 150 bps to 8.75%, alarming current account deficit which reached $5.1 billion during 4MFY22, net selling from foreigners amid reclassification from Emerging to Frontier Market, higher than the anticipated inflation rate and pressure on forex reserve resulting in PKR depreciation.

Meanwhile, Raza Jafri, Head of Equity at Intermarket Securities Limited, was of the view that the factors affecting the bourse in November are no more relevant in the coming month. "MSCI flows are behind us and would not get too aggressive from here, and it might turn into net foreign buying going forward," said Jafri.

Against USD: Rupee gains on announcement of Saudi Arabia-Pakistan deposit agreement

On the economic front, Muzzammil Aslam, Spokesperson Ministry of Finance, said that the $3 billion Saudi deposit would land in Pakistan's foreign reserves this week or early next week.

On Tuesday, sectors dragging the benchmark index lower included banking (293.21 points), fertilizer (223.29 points), and food and personal care products (51.55 points).

Volume on the all-share index increased significantly from 268.24 million on Monday to 411.46 million on Tuesday. The value of shares also markedly improved, amounting to Rs34.82 billion, up from Rs10.90 billion on Monday.

Habib Bank was the volume leader with 31.48 million shares, followed by F.Nat.Equities with 22.33 million shares, and United Bank at 20.84 million shares.

Shares of 345 companies were traded on Tuesday, of which 125 registered an increase, 198 recorded a fall, and 22 remained unchanged.