Karachi, August 21, 2023 – Pakistan stocks witnessed a dramatic downturn on Monday, shedding 770 points, in response to a significant devaluation of the Pakistani Rupee (PKR).
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 47,448 points, down from the previous Friday’s closing figure of 48,218 points, reflecting a substantial decline.
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Market analysts from Topline Securities reported that the trading day began with a modestly positive opening but quickly succumbed to a rapid selling spree shortly after the market opened. Several unfavorable factors weighed heavily on investor sentiment throughout the day.
One significant factor impacting market sentiment was the Current Account, which had displayed a surplus for four consecutive months but abruptly shifted to a deficit of US$0.8 billion. Simultaneously, the Pakistani Rupee continued its consistent decline against the US Dollar, with the interbank trading rate closing at 297.13 PKR to the dollar, marking a further 0.45 percent decrease.
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Furthermore, the announcement of the Refinery Policy, which came with incentives lower than investors had anticipated, and the absence of updates regarding the Circular Debt Management Plan, likely contributed to the bearish trend observed on Monday.
During the trading session, several prominent stocks experienced substantial declines, collectively accounting for a reduction of 262 points. These stocks included United Bank Limited (UBL), Oil & Gas Development Company Limited (OGDC), Habib Bank Limited (HBL), Hub Power Company (HUBC), and TRG Pakistan.
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Market activity was characterized by a volume of approximately 211 million shares, with an approximate value of Rs 7.1 billion. WorldCall Telecom Limited (WTL) led the volume chart, with an impressive exchange of 51.4 million shares during the trading day.
The day’s market performance underscores the sensitivity of Pakistan’s stock market to economic and financial developments, especially those related to the currency exchange rate and government policies. Investors are closely monitoring these developments for their potential impact on the future direction of the market.
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