KSE-100 snaps 13-session winning streak, falls over 400 points

The Pakistan Stock Exchange (PSX) snapped its 13-session winning streak on Monday as the benchmark KSE-100 Index registered a decline of over 400 points.

During the prolonged bull-run, the stock market gained more than 2,400 points.

Pessimism stemmed on Monday, however, due to the stalemate between the government of Pakistan and International Monetary Fund (IMF) regarding resumption of the bailout programme.

By the end of the session, the KSE-100 Index closed with a fall of 412.49 points or 0.97% to settle at 41,829.49.

KSE-100 rises 0.35% amid low investor participation

Despite a brief positive open, the market begun its descent in early hours.

Across-the-board selling was witnessed as index-heavy sectors including automobile, chemical, cement, commercial banks, oil & gas exploration companies and OMCs were trading in the red.

Experts said the delay in resumption of the IMF programme is leading to this negative sentiment.

“Pakistan’s inability to secure a staff-level agreement (SLA) with the IMF is leading to this drag,” Sana Tawfik, analyst at Arif Habib Limited (AHL), told Business Recorder.

The IMF on Friday reiterated that it is working with Pakistani authorities to bring the pending ninth review to conclusion “once the necessary financing is in place and the agreement is finalised”.

“In addition, the IMF supports the authorities in the implementation of policies in the period ahead, including in the technical work to prepare the FY24 budget, which is to be passed by the National Assembly before end-June,” Nathan Porter, the IMF Mission Chief for Pakistan, was quoted as saying in a statement to Business Recorder.

The development comes as Pakistan remains engaged with the Washington-based lender to resume its bailout programme that has been stalled at the ninth review since November last year.

Meanwhile, Tawfik on Monday said the earlier positive sentiment was driven by the robust result season which has ended. “At present, there is no new development in sight to drive upward the momentum,” said the analyst.

“Market is also closely monitoring the development at the political front,” she added.

The talks between the government and the Pakistan Tehreek-e- Insaf (PTI) to decide on an election date concluded without any result.

A report from Arif Habib Limited stated a negative session was observed to mark the start of the week at the PSX.

“The market opened in the green but stocks fell as bears dominated the benchmark KSE-100 index,” it said.

“Negative news flow with regard to revival of the IMF programme led to disappointment among investors, as profit selling was observed across the board.

“Given low market valuations, the PSX still lacked triggers that would allow investors to initiate positions and capitalise on true values.”

Trading volumes remained reasonable, with third-tier equities continuing to lead the volume board, the report said.

A report from Capital Stake cited that “breaking its winning streak from the previous session, the PSX closed the session on Monday in red”.

Indices slipped lower and lower all day long while volumes inched up from previous close, it said.

Sectors driving the benchmark KSE-100 index lower included technology and communication (95.50 points), oil and gas explorations (78.00 points) and cement (73.94 points).

Volume on the all-share index inched up to 179.1 million from 178.2 million on Friday while the value of shares traded dropped to Rs4.8 billion from Rs5.8 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 20.9 million shares followed by TPL Properties with 19.8 million shares and Pak Refinery with 11.4 million shares.

Shares of 340 companies were traded on Monday, of which 80 registered an increase, 236 recorded a fall and 24 remained unchanged.