The Pakistan Stock Exchange (PSX) witnessed a turbulent session on Tuesday, with the benchmark KSE-100 Index dropping by 389 points, closing at 42,878 points, down from the previous day’s close of 43,267 points.
The KSE-100 index faced sustained pressure throughout the day due to escalating political uncertainties and a challenging commodity landscape, especially in the cement sector, which grappled with rising international coal prices.
Analysts at Arif Habib Limited reported a volatile session at KSE-100 index marked by cautious investor sentiment in response to ongoing political unrest, as well as the effects of an overheated commodities cycle. These factors weighed heavily on the market, which opened in the red zone and remained under pressure until the closing bell. The cement sector, particularly sensitive to coal price fluctuations, struggled, contributing significantly to the day’s losses. During the final trading hour, the market experienced widespread selling across various sectors, intensifying the day’s downturn.
Among the sectors that contributed most to the decline at the KSE-100 index were Banks, which shed 85.8 points; Cement, down 67.7 points; Exploration & Production (E&P), losing 62.1 points; Power, which dropped 37.3 points; and Oil Marketing Companies (OMC), which declined by 34.0 points. The cumulative pressure from these sectors led to a subdued performance for the index.
Trading activity reflected the market’s caution, with volumes slipping by 4.5% to 226.1 million shares from the previous day’s 236.9 million shares. The value of traded shares also declined, falling 13.3% to $39.9 million, down from $46.0 million. Key stocks that contributed notably to trading volumes included TPL Corp, Unity Foods, Ghandhara Industries (GGL), TRG Pakistan, and TPL Properties (TPLP).
Topline Securities analysts noted that the KSE-100 index experienced a brief period of stability in the morning but became increasingly volatile in the afternoon, particularly after the opposition submitted a no-confidence motion against Prime Minister Imran Khan in the National Assembly. The uncertainty surrounding this political development added to the bearish sentiment, pushing the index to an intraday low of 478 points.
Adding to the cautious mood, National Bank of Pakistan (NBP) announced its financial results for the fourth quarter of 2021, reporting earnings per share (EPS) of Rs1.9, down 7% year-on-year and 46% quarter-on-quarter. The bank also declared a dividend per share (DPS) of Re 1, which was received as another sign of a challenging economic environment.
With heightened political uncertainty and volatile commodity prices continuing to pose challenges, market analysts expect investor sentiment to remain cautious, with further fluctuations anticipated in the coming sessions.