KSE-100 index sheds 290 points during intraday trading

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index on Friday plunged by more than 290 points during intraday trading.

According to the PSX website, stocks initially started in the green. However as the day progressed, the index bottomed out at 39,541 by 11:30am, sliding 290.75 points from yesterday’s close of 39,831.75.

The index then made a slight recovery and settled at 39,726.48 points, down 105.27, before the prayer break.

Head of research at Intermarket Securities Raza Jafri said that the KSE-100 index was “so far holding its ground better than the last few days”.

“The State Bank of Pakistan (SBP) is indicating that concerns about Pakistan are unfairly overblown and this can help calm down markets,” he said.

Ahsan Mehanti of Arif Habib Corporation said bearish activity was “witnessed in the earnings season amid thin trade on political noise and weak rupee”.

Fertiliser and energy stocks outperformed on rising local prices, he noted.

He added that the slump in global crude oil prices and investors’ concerns regarding economic uncertainty played a catalyst role in bearish activity.

Salman Naqvi, head of research at Aba Ali Habib Securities, said that the country’s current economic situation was having an effect on the stock market.

The dollar appreciated today too and is continuously on the rise, he pointed out, adding that the primary reason for this was “political uncertainty”.

He went on to say that there was a continuous increase in the trade deficit as well as inflation, which had an impact on the stock market.

He warned that this would persist as long as political uncertainty prevailed.