Aug., 28(E.A Report) — Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index weighed down by near 200 points on Monday with collective pessimism over rupee’s record fall and lack of positive triggers.
KSE-100 started first day of the week positive, reaching an intra-day high of 47,733.51. However, profit taking erased the gains and pushed the index into negative territory.
At close, the benchmark index settled at 47,478.61, down 192.61 points or 0.40%. “Profit-taking was noted in the Pakistan equities market as investors sold off their holdings in response to circulating rumours. This action was prompted by concerns about the possibility of an upcoming rise in the policy rate,” brokerage house Topline Securities said in its market report.
During the session, investors opted to dispose of a fraction of their positions, it added.
“This strategic choice not only prompted the market to relinquish some of its previously accrued value but also culminated in the aforementioned index transitioning into unfavourable terrain.”
Prominent influence on the index was exerted by OGDC, PPL, LUCK, TRG & HUBC, causing a collective decline of 139.71 points. Conversely, HMB, POL & KAPCO countered with a gain of 66 points on Monday, according to the brokerage house.
Index ended last week with 1.14% week-on-week decline on worries of weakening local currency, current account deficit, and lack of positive triggers.
On the economic front, the Pakistani rupee reached a new record low against the US dollar, as it settled at 302 in the inter-bank market on Monday. At close, the rupee was down Re1 or 0.33%, as per the State Bank of Pakistan. In the open market, the rupee was trading at around 315 against the US dollar.
Volume on the all-share index decreased to 184.13 million from 192.04 million on Friday.
The value of shares declined to Rs6.465 billion from Rs6.53 billion in the previous session.
K.Electric Ltd. remained the volume leader with 19.24 million shares, followed by Bankislami Pak with 16.66 million shares and Kohinoor Textile with 10.5 million shares.
Shares of 314 companies were traded on Monday, of which 91 registered an increase, 202 recorded a fall, and 21 remained unchanged.