Equity market falls by 214 points on political uncertainty

Equity market falls by 214 points on political uncertainty

KARACHI: The equity market fell by 214 points on Wednesday owing to political uncertainty as allies of ruling party are showing disapproval.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,993 points as against 43,207 points showing a decline of 214 points.

Analysts at Arif Habib Limited said that political uncertainty took controls over sentiment today.

Allies of PTI are one by one showing disapproval of their policies and hinting a crisis in the making that caused investors to be safe than sorry.

Investors kept booking profit at current levels which exerted pressure on oil & gas chain (i.e. OMCs, E&P and Refineries).

Banking sector also remained slow, whereas Cement sector had some buying interest that caused prices to be on the higher side.

Overall, Cement sector led the volumes with 34.4 million shares, followed by Banks (32.9 million) and Technology (16.2 million).

Among scrips, BOP led the volumes with 19.6 million shares, followed by MLCF (18.2 million) and TRG (9.2 million).

Sectors contributing to the performance include E&P (-553 points), Power (-40 points), Fertilizer (-25 points), other (-23 points), Banks (-21 points).

Volumes declined further from 249.7 million shares to 171.3 million shares (-32 percent DoD). Average traded value also declined by 22 percent to reach US$ 39.6 million as against US$ 50.4 million.

Stocks that contributed significantly to the volumes include BOP, MLCF, TRG, STPL and UNITY, which formed 37 percent of total volumes.

Stocks that contributed positively include MCB (+18 points), PAKT (+7 points), DGKC (+7 points), AICL (+7 points) and FML (+6 points). Stocks that contributed negatively include HUBC (-35 points), PPL (-27 points), PSEL (-23 points), DAWH (-14 points), and POL (-12 points).