The Pakistan Stock Exchange (PSX) endured a volatile session on Monday and the KSE-100 index oscillated between the red and green zones as investors remained cautious ahead of the appointment of the next chief of army staff (COAS).
Defense Minister Khawaja Asif stated on Monday that the process of appointment of the next COAS had begun. Volumes at the PSX fell as investors chose to remain on the sidelines.
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By the end of the day, the KSE-100 Index was up 30.95 points or 0.07% to close at 42,761.19.
Following a positive open, the market hit an intraday high value in early hours. Volatility gripped the market shortly afterward and it traded in a narrow range through the day. Buying activity in the final hour helped the market close with a gain.
Despite the upward close, automobile, cement and fertiliser sectors saw massive selloff and reported losses. On the other hand, banking and oil segments closed mixed.
A report from Capital Stake stated that the PSX closed a turbulent session on Monday flat.
“Indices swayed in both directions, while volumes shrunk from last close,” it said. “Investors chose to stay on the sidelines in anticipation of the long-awaited selection of the COAS.”
Political uncertainty within the country also urged investors to trade with caution, the report said.
A report from Arif Habib Limited stated that a range-bound session was witnessed at the PSX.
“The KSE-100 index opened on a positive note but lack of investors’ confidence dragged the index to trade in a narrow range,” it said. “Main board volumes remained dry although decent volumes was observed in the third tier stocks.”
On the economic front, the current account deficit of Pakistan amounted to $567 million in October 2022 compared to $1,663 million in same period last year.
Moreover, the rupee maintained its downward trend against the US dollar, falling Rs0.49 or 0.22% in the inter-bank market on Monday to close at Rs223.66.
Sectors lifting the benchmark KSE-100 index higher included, technology and communication (96.65 points), banking (16.96 points) and miscellaneous (9.70 points).
Volume on the all-share index declined to 132.9 million from 189.3 million on Friday. The value of shares traded fell to Rs4.6 billion from Rs5.1 billion recorded in the previous session.
WorldCall Telecom was the volume leader with 14.1 million shares, followed by TRG Pakistan with 10.2 million shares and Unity Foods with 8.7 million shares
Shares of 334 companies were traded on Monday, of which 150 registered an increase, 156 recorded a fall, and 28 remained unchanged.