Losses continued to mount at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index dropped by 2.69% during trading on Thursday.
The KSE-100 started slightly positive, reaching an intra-day high of 46,358.02. However, any minute gains were erased soon enough with investors then resorting to dump-and-run, pushing the KSE-100 deep into the red territory.
At close, the benchmark index settled at 45,002.42, down by 1242.14 points or 2.69%. It had earlier fallen to a low of 44,459.63, a decrease of nearly 1,800 points.
Its negative run comes after the KSE-100 Index had also fallen on Thursday for the fourth consecutive session, a slide driven by rising economic concerns among investors.
Across-the-board selling continued on Thursday, with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and refinery sectors trading in the red.
Selling was especially witnessed in the energy and banking sectors.
Negativity has persisted over the market in recent trading sessions, with investors concerned over rupee’s continued free fall against the dollar, skyrocketing fuel prices that will push inflation up, and growing fears of another hike in the key policy rate that already stands at a record high.
Experts said market participants are expecting another policy rate hike by the central bank, in its bid to control rising inflation, in the upcoming Monetary Policy Committee (MPC) meeting, which is currently scheduled for September 14.
Abdullah Umer, a market analyst, told Business Recorder that the ongoing currency depreciation is driving negative sentiment in the market.
“The participants are unable to identify when the exchange rate would stabilise,” he said. “The depreciation has flared up concerns of higher energy tariffs and increased external debt payments.”
On the economic front, the Pakistani rupee’s downward trajectory continued as it dropped to yet another record low against the US dollar, settling at 305.54 in the inter-bank market on Thursday. At close, the rupee was down Rs1.09 or 0.36%, as per the State Bank of Pakistan. This was its 10th successive fall in the inter-bank market.
Volume on the all-share index increased to 287.35 million from 200.29 million on Wednesday.
The value of shares rose to Rs12.303 billion from Rs8.987 billion in the previous session.
WorldCall Telecom remained the volume leader with 31.87 million shares, followed by Oil & Gas Dev. with 17.5 million shares and Cnergyico PK with 13.08 million shares.
Shares of 325 companies were traded on Thursday, of which 48 registered an increase, 257 recorded a fall, and 20 remained unchanged.