The stock market witnessed a significant downturn on Monday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) plunging by 960 points amid mounting political uncertainty following the arrest of an opposition leader.
The KSE-100 index closed at 40,740 points, down from 41,701 points, marking a substantial decline that rattled investors and sent shockwaves through the market.
Analysts at Arif Habib Limited attributed the market’s downward spiral to the lingering effects of last week’s rollover session, which had a trickle-down impact on Monday’s trading. Low settlement ratios from the previous week exerted pressure on the market, contributing to the overall bearish sentiment.
Moreover, political uncertainty stemming from the arrest of the opposition leader further exacerbated the situation, leading to a sharp decline of 1056 points during the trading session. The uncertainty surrounding the political landscape added to investors’ apprehensions, prompting heavy selling pressure across various sectors.
Cement, Oil & Gas Marketing Companies (O&GMCs), Refineries, and Banks were among the sectors that experienced significant selling pressure, further weighing down the index.
In terms of trading volumes, technology stocks emerged as the most actively traded, with 59.7 million shares changing hands, followed by O&GMCs (54.6 million) and Power (38.4 million). Notable scrips that saw high trading volumes included HASCOL, UNITY, and BYCO.
Several sectors contributed to the market’s poor performance, with Banks (-227 points), Cement (-137 points), Fertilizer (-75 points), Textile (-59 points), and Exploration & Production (E&P) (-58 points) bearing the brunt of the downturn.
Overall trading volumes declined from 435 million shares to 407.2 million shares, marking a 6 percent decrease day-on-day (DoD). Similarly, the average traded value also saw a decline of 7 percent, reaching US$86.1 million compared to US$92.9 million previously.
Key stocks that significantly impacted trading volumes included HASCOL, TRG, KEL, UNITY, and BYCO, collectively accounting for 37 percent of the total volumes traded.
While a few stocks managed to contribute positively to the index, such as TRG (+6 points), EFUG (+3 points), and MTL (+2 points), the market was predominantly influenced by stocks that incurred losses. Stocks that contributed negatively included HBL (-79 points), MARI (-47 points), BAHL (-44 points), ENGRO (-37 points), and HUBC (-35 points), among others.
As the market grapples with political uncertainty and volatile trading conditions, investors remain cautious, closely monitoring developments that may impact market sentiment and future trading activities.
