Pakistan stocks dip for 4th straight session as PKR fall continues

KARACHI: Pakistan stocks continued to fall for 4^th straight session on Wednesday due to negative sentiments in the wake of devaluation in Pakistani Rupee (PKR).

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) recorded a decline of 255 points to end at 40,966 points from previous day’s closing of 41,221 points.

The stock market has lost over 1,000 points during last four sessions after closing at 42,012 points on September 14, 2022.

Analysts at Arif Habib Limited said another down-close session today after a positive open zone.

“Continued pressure on the PKR softened sentiment to take the KSE-100 below 41k,” the analysts said, adding all eyes now on the FED tonight and the quantum of rate increase.

PKR on Wednesday continued its losing streak for 14th consecutive session against the dollar and ended near to the historic low of PKR 239.65 in the interbank foreign exchange market.

The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

The exchange rate recorded a decline of 74 paisas to end at PKR 239.64 to the dollar from previous day’s close of PKR 238.91 in the interbank foreign exchange market.

The local currency has maintained the free-fall for the last 14 sessions. During this period the local currency depreciated by PKR 21.04 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

Sectors contributing to the performance include E&P (-91.9 points), Cement (-39.3 points), Technology (-26.9 points), Banks (-24.3 points) and OGMCs (-22.2 points).

Volumes increased from 156.2 million shares to 170.4 million shares (+8.8 per cent DoD). The average traded value decreased by 14.8 per cent to US$ 20.1 million as against US$ 23.7 million.

Stocks that contributed significantly to the volumes are KEL, TPLP, TRG, CNERGY and WTL.