Daily Times

Investors witnessed a crash at Pakistan Stock Exchange (PSX) as mounting political uncertainty in the country led bearsto trample the stocks at the bourse, as index touched 63 sessions low today. On Thursday, the benchmark index tumbled for the fourth consecutive session, breaching 43,000 level, as it closed at 42,779.76 level after losing another 911.92 points by the closing bell.

The selling pressure, has already turned YTD (Year-to Date) return on benchmark index to turn negative for in CY21, showing a decline of 974 points as compared to the closing of the previous year, as the index has lost 3,058 points (or 6.7%) in the last four trading sessions. This is the highest 4-day losing streak after Mar 18, 2020, when the market fell sharply in fear of the Covid outbreak.

On Thursday, despite opening up on a positive territory, the benchmark index succumbed to selling pressure later in the session, with several stocks hitting lower circuits. However, periodic buying contained losses to less than 1,000 points by the end of session.

Investors’ sentiments have dashed ever since the political temperatures have surge in the country following Senate upset, when Government’s candidate and finance minister Hafeez Sheikh lost to opposition alliance PDM led Yousaf Raza Gillani, following an apparent horse-trading. On Thursday, however, investors liquidated their holdings ahead of the Senate Chairman election due to be held on Friday, as investors preferred staying away from the market than bearing the brunt from any surprise as was witnessed in the previous week.

On the economic front, investors continue to panic over the recent upsurge in inflation (primarily due to international crude oil prices) as they speculate about upcoming monetary policy and impact thereof on cyclicals. As a result, cement, steel and oil & gas marketing sectors continued to witness major attrition.

The volume at KSE-100 slightly surged from 188.32 million shares recorded in the previous session to 196.93 million shares, while the all-share volumealso jumpedfrom 363.24 million shares recorded in the previous session to 406.1 million shares. Market Capital decreased by Rs.184.41 billion, while total value traded decreased by 3.43 billion to Rs.17.71 billion.

The volume chart was led by Unity Foods Limited, TRG Pakistan Limited and Hum Network Limited. The scips, exchanged 34.89 million, 27.09 million and 21.53 million shares, respectively.

During the session, sectors which dented he index were Commercial Banks with 139 points, Oil & Gas Exploration Companies with 118 points, Technology & Communication with 98 points, Textile Composite with 74 points and Cement with 70 points. Among the scrips, the most points taken off the index was by TRG Pakistan Limited which stripped the index of 105 points followed by Oil &Gas Development Company Limited with 68 points, Lucky Cement Limited with 40 points, Habib Bank Limited with 40 points and ENGRO with 34 points.

However, sectors which propped up the index were Insurance with 15 points and Paper & Board with 4 points. Among the scrips, the most points added to the index was by Adamjee Insurance Company Limited which contributed 20 points followed by Systems Limited with 10 points, Murree Brewery Company Limited with 6 points, Packages Limited with 4 points andFauji Fertilizer Bin Qasim Limitedwith 4 points.