The Pakistan Stock Exchange (PSX) experienced a rollercoaster ride on Thursday and the KSE-100 Index retreated 0.21% owing to persistent decline in value of rupee against the US dollar.

Moreover, investors also assumed a cautious stance ahead of the decision of the Financial Action Task Force (FATF) in its plenary meeting on Friday.

By the end of the session, the KSE-100 Index fell 89.01 points or 0.21% to close at 42,137.04.

KSE-100 extends gains as tensions with US alleviate

Market view suggests that Pakistan will exit the grey-list on Friday.

Trading began with a jump and the KSE-100 Index climbed to intra-day high value in the first hour. Selling pressure gripped the market at this point and it erased all gains. The downward trend continued in final hours which made the market close with a loss.

Index-heavy automobile, cement, chemical, banking and oil spaces closed in the red.

A report from Arif Habib Limited stated that the PSX saw a mixed trading session.

“The market started out strong, but the rupee’s weakening against the US dollar eroded investor confidence and caused profit-taking, triggering the index to close down,” it said. “Mainboard volumes were decent on the contrary third tier stocks remained in the limelight.”

Capital Stake, in its report, stated that the PSX closed a turbulent session on Thursday flat.

“Indices swung in both directions while volumes appreciated from last close,” it said. “Investors preferred to stay on the sidelines ahead of FATF’s meeting regarding removal of Pakistan from its grey list.”

On the economic front, Pakistan reported a current account deficit of $316 million in September 2022 against $1,152 million in same period last year, showed data from the State Bank of Pakistan.

Pakistan’s rupee posted a marginal decline for the seventh consecutive session against the US dollar on Thursday and depreciated 0.03% or Rs3.16 to close at 220.95.

Sectors dragging the benchmark KSE-100 Index lower included technology and communication (58.56 points), cement (26.52 points) and banking (24.86 points).

Volume on the all-share index rose to 267.6 million from 250.3 million on Wednesday. Similarly, the value of shares traded fell to Rs6.3 billion from Rs6.7 billion recorded in the previous session.

Hascol was the volume leader with 31.4 million shares, followed by K-Electric with 22.8 million shares and G3 Technologies with 21.1 million shares

Shares of 340 companies were traded on Thursday, of which 159 registered an increase, 154 recorded a fall, and 27 remained unchanged.