Karachi, August 31, 2023 – Pakistan’s equities faced a sharp decline on Thursday, plummeting by 1,242 points, in the midst of a record-breaking slide in the value of the Pakistani Rupee (PKR) against the US dollar.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 45,002 points, down significantly from the previous day’s closing of 46,244 points.
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Market analysts attributed this dramatic market downturn to the persistent decline in the value of the Pakistani rupee (PKR) against the US dollar over the past ten trading sessions. The rupee reached an all-time low of PKR 305.54 against the dollar on August 31, 2023, in the interbank foreign exchange market.
The market’s woes were further compounded by expectations of an aggressive increase in the benchmark interest rate by the State Bank of Pakistan (SBP) in its upcoming monetary policy statement (MPC).
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A total of 287,356,194 shares were traded during the day, a notable increase compared to the 200,288,813 shares traded on the previous trading day. The trading value of shares also saw a substantial rise, reaching Rs 12.303 billion, compared to Rs 8.987 billion on the last trading day.
Among the companies listed, 325 witnessed trading activity, with 48 of them recording gains and 257 sustaining losses. The share price of 20 companies remained unchanged.
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The three top-trading companies by volume were WorldCall Telecom, with 31,867,079 shares traded at Rs 1.14 per share; Oil and Gas Development, with 17,491,092 shares traded at Rs 92.95 per share; and Cnergyico PK, with 13,083,524 shares traded at Rs 2.84 per share.
Sitara Chemical saw the most significant increase in share price, with a rise of Rs 15.22 per share, closing at Rs 233.90. Suraj Cotton followed closely behind, with a per-share price increase of Rs 7.63, reaching Rs 109.33.
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On the downside, Rafhan Maize XD experienced the most significant decrease, with a per-share decline of Rs 225.00, closing at Rs 8,000.00, followed by Nestle Pakistan, which saw a per-share decline of Rs 188.38, closing at Rs 6,911.00.
These developments underscore the sensitivity of Pakistan’s stock market to economic factors, including currency fluctuations and interest rate movements. The market’s performance is closely monitored as it reflects the economic challenges and dynamics within the country.
