Political uncertainty keeps Pakistan stocks range-bound

Political uncertainty keeps Pakistan stocks range-bound

KARACHI: Pakistan stocks ended range-bound on Wednesday owing to uncertainty on the domestic political front.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 42,880 points from last day’s closing of 42,928 points, showing a decline of 48 points.

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Analysts at Ismail Iqbal Securities said that Pakistan equities remained range-bound during the day owing to uncertainty on the domestic political front.

Trading volume decreased to 139 million shares as compared to 195 million shares a day earlier. The benchmark KSE-100 index lost 48 points to close 42,880 points. However, power generation and distribution, commercial banks, and cement sectors were the major laggards during the day, cumulatively shedding 97 points from the index.

READ MORE: Stocks end flat amid lackluster trading activity

Meanwhile, analysts at Topline Securities said that Pakistan equities closed slight negative where benchmark KSE100 Index settled at 42,880 level (down 0.11 per cent).

Continuing its yesterday positive momentum market kicked off on a positive note making an intraday high of 111 points.

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However profit taking has been witnessed soon after HUBC notification, where the company notified the exchanged that HUBC as a Joint Venture and sponsor of CPHGC provided security in the form of Standby Letter of Credit (SBLC) – which is a form of guarantee – of $150 million in favor of CPHGC to satisfy any funding shortfall.

READ MORE: Stocks remain negative in ongoing political chaos

This SBLC was to expire on November 23, 2022. If the SBLC is not renewed 15 days prior to the expiry which is the case now, CPHGC’s lender shall have the right to call upon the SBLC. Which led the HUBC to close 3.63 per cent down.

Traded volume and value for the day stood at 138.2 million shares (down 29 per cent) and Rs5.09 billion (down 25 per cent) on DoD basis respectively. WTL was today`s volume leader with 16.46 million shares.

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