Stocks remain volatile on expected harsh measures

KARACHI: Pakistan stock remained volatile on Wednesday as investors are expecting harsh measures in the upcoming federal budget 2022/2023.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 41,553 points as compared with previous day’s closing of 41,568 points, showing a decline of 15 points.

Analysts at Arif Habib Limited said that the PSX continued to remain under pressure throughout the day due to concerns regarding adverse upcoming budget and mounting inflation.

The federal budget is scheduled on June 10, 2022.

The benchmark KSE-100 index witnessed a volatile session as investors opted to remain sideways as lackluster volume was witnessed in the main board stocks whereas hefty volumes were observed in 3rd-tier stocks. Banking sector stayed in the red zone due to expectation of higher super tax and increase in other taxes in the upcoming budget.

The Index closed at 41,553.16 points, down by 15.25 points (-0.04 per cent DoD). Sectors contributing to the performance include Banks (-62.9 points), Fertilizer (-18.2 points), Textile (-15.7 points), Automobile Assemblers (-14.2 points) and Insurance (-8.9 points).

Volumes decreased from 157.4 million shares to 151.1 million shares (-4.0 per cent DoD). Average traded value increased by 6.2 per cent to reach US$ 22.3 million as against US$ 21.0 million.

Stocks that contributed significantly to the volumes are UNITY, DGKC, OBOYR1, TPLP and PRL.