Daily Times

In the wake of political turmoil in the country, as well as a jump in global commodity prices, the Pakistan Stock Exchange had a roller-coaster trading week marked by pessimistic activity.

In response to the increased volatility on the global and domestic fronts, the KSE-100 index fell 898 points, or 2.02 percent, in the previous week ended on Friday, closing the week at the 43,653 point level.

During the first two days of the week, the KSE-100 index plummeted more than 1,600 points, indicating that the opposition parties’ no-confidence motion against Prime Minister Imran Khan had destroyed the faith of market participants in the country’s economy.

Topline Securities said the decline was due to an increase in political noise, including a no-confidence move against the prime minister in the National Assembly amid volatile international commodity prices due to the Russia-Ukraine crisis. The opposition sponsored the motion.

A rise in global crude oil prices to a 14-year high of about $130 per barrel, prompted investors to protect their holdings in the market. In addition, traders were deterred from making new purchases since they were anticipating an increase in interest rates by the State Bank of Pakistan.

Ending the bear run at the bourse in the middle of the week was supported by the central bank’s decision to keep the policy rate at the present level of 9.75 percent.

The stock market’s recent surge was also helped along by a drop in global oil prices.

Weekly Review: Stocks plummet as a result of political unrest

Following developments on the no-confidence motion, investors’ confidence in the government waned in the final trading session of the week.

As a result of the rupee’s fall to an all-time low versus the US dollar, investors remained cautious, fearing an increase in inflation and a widening of the current account deficit.

Experts predicted that the market will stay range-bound in the coming week. “The market is expected to remain volatile as the government and opposition seek alliances ahead of the no-confidence motion against the prime minister.”

The average daily volume traded decreased 0.7 percent week-on-week to 214 million shares, while the average daily value moved decreased 11 percent week-on-week to $38 million during the week under review.

Technology and communication (107 points), vehicle parts and accessories (20 points) and chemical industries (20 points) were the three sectors that contributed the most to the overall score (15 points).

Banks (167 points), oil and gas exploration businesses (163 points), power generation and distribution (143 points), cement (113 points), and oil and gas marketing (113 points) were the industries that contributed badly (101 points).

Systems Limited (148 points), National Foods Limited (23 points), and Thal Limited (23 points) also contributed positively (20 points).

However, Hub Power Company (124 points), Lucky Cement (122 points), Pakistan Petroleum Limited (75 points), Oil and Gas Development Company (60 points), and Pakistan State Oil (60 points) made negative contributions (59pts).

A net sell of $3.13 million was recorded this week in comparison to the prior week’s net sell of $0.97 million. Banking ($4.4 million), textiles ($0.4 million), and other industries had a significant amount of selling, respectively.

Companies bought the most ($5.4 million), followed by other organisations ($3.7 million) on the local market.

Engro Powergen Thar said the recent explosion caused no substantial damage, six months KIBOR reached 11.93 percent, foreign exchange reserves decreased by $207 million, and the UAE shared plans to acquire Guddu Power Plant with Saudi Arabia, among other developments.