PSX witnessed bloodbath session as rising political temperature amid ongoing constitutional crisis raises alarm in stock market.
KSE-100 index seesaws as investors struggle to anticipate impact of actions being taken by authorities.
Analyst says it is “difficult” to comment on outlook of market.
KARACHI: The Pakistan Stock Exchange (PSX) on Monday came under intense selling pressure as the rising political drama rattled investors and pushed the benchmark index deep into the red with a drop of over 1,200 points.
The rising political temperature in the country amid the ongoing constitutional crisis raised alarm in major sectors of the economy as well as the stock market, which fell below 44,000-point mark.
President Arif Alvi, on the suggestion of Prime Minister Imran Khan, dissolved the National Assembly in an attempt to avoid voting on the no-confidence motion tabled against him [PM Khan].
The benchmark KSE-100 index seesawed as investors struggled to anticipate the impact of actions being taken by the authorities in the wake of the political turmoil.
At the close, the KSE-100 index plummeted 1,250.06 points, or 2.77%, to settle at 43,902.05 points.
Speaking to Geo.tv, BMA Capital Management Executive Director Saad Hashemy said that the political uncertainty is taking a toll on the market.
“Investors are always concerned about the economic issues being addressed,” he said, adding that till there is clarity on the political front the market will remain volatile on fears of economic concerns.
Regarding the market’s direction in the ongoing week, the analyst said that it is “difficult” to comment on the outlook. However, Hashemy added that the next two to three days are important as market players are closely eyeing how things are unfolding and developments during this period will give the market a direction.
A report from Arif Habib Limited noted that the benchmark KSE-100 index experienced a “blood bath” session throughout the day due to political unrest.
“A significant decline was observed in the volumes of the market as well,” it stated, adding that across the board selling was witnessed.
Main board volumes remained subdued. On the flip side, hefty volumes were recorded in the third-tier stocks.
Sectors contributing to the performance included banks (-324.5 points), cement (-252.9 points), technology and communications (-100.6 points), exploration and production (-93.5 points) and power (-69.2 points).
Shares of 305 were traded during the session. At the close of trading, 26 scrips closed in the green, 268 in the red, and 11 remained unchanged.
Overall trading volumes plunged to 170.48 million shares compared with Friday’s tally of 389.11 million. The value of shares traded during the day was Rs5.49 billion.
Telecard Limited was the volume leader with 17.39 million shares traded, losing Rs0.57 to close at Rs13.86. It was followed by K-Electric with 16.01 million shares traded, losing Rs0.18 to close at Rs2.92, and TPL Properties with 12.55 million shares traded, losing Rs1.56 to close at Rs19.26.
Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.
The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.
Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.
The market also saw the 114,000-point limit reestablished during the trading session.
The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.
Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.
In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.
The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.
In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.
Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.
The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.
In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.
According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.
Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.
His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.
At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.
Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.
With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.