Karachi, August 10, 2023 – Uncertainty surrounding the interim setup following the dissolution of the national assembly has resulted in a decline of 419 points in Pakistan stocks.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 47,808 points, down from the previous day’s closing of 48,227 points.
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The decision by President Arif Alvi to dissolve the assembly was based on the advice of the prime minister. However, the conclusion of the five-year tenure of the legislative assembly has led to a lack of consensus among political parties regarding the finalization of the interim setup.
Financial analysts at Topline Securities reported that the stock market began the day on a positive note, with the KSE-100 index showing bullish momentum and reaching an intraday high of 48,623 points, an increase of 395 points (0.82%).
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Surprisingly, in the latter half of the day, a widespread selloff took hold, impacting the market from all directions. This sudden selling pressure not only erased the earlier gains but pushed the benchmark index into negative territory, resulting in a closing at 47,808 points, a loss of 419 points (0.87%).
The reason for the selling spree could be attributed to the absence of official confirmation from both the International Monetary Fund (IMF) and the Ministry of Finance regarding the news of the IMF’s approval of the Circular Debt Management Plan, which was reported the previous day.
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During trading hours, several sectors, including Exploration & Production (E&P), Power, Banks, and Technology, contributed negatively to the decline. Stocks such as OGDC, HUBC, PPL, MEBL, and SYS collectively lost 267 points. On the positive side, stocks like DAWH, UBL, and NESTLE added 137 points, indicating some buying interest in those companies.
Market volumes were reported at 322 million shares, with a value of Rs12.8 billion. WTL (Wireless Telecom Limited) led the volume chart with 41.5 million shares changing hands during the trading session. The uncertainty in the political and economic landscape, coupled with the absence of concrete confirmation from key institutions, has contributed to the day’s market fluctuations.
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