Capital market marks its worst single-day decline as political uncertainty likely triggered foreign outflows, analyst says
ISLAMABAD
The 100-Index of the Pakistan Stock Exchange (PSX) turned around to bearish trend on Tuesday, losing 3,505.62 points more points, a negative change of 3.57 percent, closing at 94,574.16 points as compared to 98,079.78 points on the last trading day.
A total of 1,116,324,649 shares were traded during the day as compared to 640,258,528 shares the previous trading day, whereas the price of shares stood at Rs 43.291 billion against Rs.25.623 billion on the last trading day.
As many as 456 companies transacted their shares in the stock market, 53 of them recorded gains and 355 sustained losses, whereas the share price of 48 companies remained unchanged.
The three top trading companies were K-Electric Limited with 101,636,133 shares at Rs 4.65 per share, Bank of Punjab with 92,023,190 shares at Rs 6.85 per share and Hascol Petrol with 73,320,431 shares at Rs.13.59 per share.
Sapphire Textile Mills Limited witnessed a maximum increase of Rs. 40.88 per share price, closing at Rs 1,177.99, whereas the runner-up was Mehmood Textile Mills Limited with Rs 35.02 rise in its per share price to Rs 535.40.
Rafhan Maize Products Company Limited witnessed a maximum decrease of Rs 141.07 per share closing at Rs 7,813.48 followed by Unilever Pakistan Foods Limited with Rs 112.79 decline to close at Rs.19,019.35.
Explaining the decline, Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, said: “Stocks remained bearish due to political uncertainty and concerns over foreign outflows.”
He added that PTI protests in the capital, consolidation amid the PSX futures contracts’ rollover, and weak global crude oil prices led to the bearish spell.
Thousands of PTI supporters, defying barricades and government restrictions, have marched on Islamabad, demanding the release of political prisoners, the reversal of the 26th Constitutional Amendment, and the restoration of their alleged “stolen mandate.”
The protests have sparked heightened volatility, with investors adopting a wait-and-see approach.
Topline Securities in a post-close note attributed this steep drop to mounting political uncertainty triggered by PTI’s march towards Islamabad, which significantly rattled investor confidence.
“Adding to the turmoil, the State Bank of Pakistan’s removal of the Minimum Deposit Rate on conventional banks for companies, coupled with its mandate for Islamic banks to pay at least 75% of the weighted average gross yield on Pakistani rupee savings deposits, further unsettled investors,” the brokerage report said.
