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Bears took charge of the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index lost over 1,000 points on foreign selling ahead of the Monetary Policy Committee (MPC) meeting.
According to the PSX website, the KSE-100 benchmark index lost 630.11 or 0.99 per cent at 11:23am to stand at 63,182.95 from the previous close of 63,813.06.
By 3:30pm, the index further dipped by 1,039.34 points or 1.63pc and closed at 62,773.72.
In a post on social media platform X, Karachi-based brokerage firm Topline Securities said the benchmark of representative shares saw its highest day-on-day decline after Dec 26, 2023, today.
Mohammed Sohail, chief executive of Topline Securities, attributed the downward spiral to the previous week’s “foreign selling, coupled with no news on the resolution of circular debt proposal”.
Raza Jafri, head of equities at Intermarket Securities, said that there was a lack of clarity regarding the plans for circular debt settlement. He also noted that a majority of market participants anticipated no change in the interest rate ahead of today’s MPC meeting.
He noted that these factors kept “new buyers at bay”, as shown by relatively thin trading activity. He added that the foreign institutional selling, which was in place since last week, may also have dragged the index down.
Faran Rizvi, head of equity sales at JS Global, said, “Political uncertainty is the primary reason market participants are hesitant, leading to a sideways trend”.
“The market may consolidate at these levels. We advise investors to exercise caution during this period,” he said.
Meanwhile, Awais Ashraf, director of research at Akseer Research, said the expectation of unchanged monetary policy and election uncertainty were the primary reasons behind today’s losses.
Abdul Azeem, head of research at Spectrum Securities Limited, said the KSE-100 index fell due to uncertainties about resolving circular debt.
“International oil prices rose by 0.15pc to USD 78.22/bbl amid the Red Sea conflict. Shipping disruptions and re-routing in the Red Sea will maintain geopolitical premiums in key commodity markets and the USD at the interbank increased by 16 paisa to Rs279.75, impacting investor sentiments,” he added.