KARACHI - After witnessing 13 consecutive bullish sessions, Pakistan Stock Exchange (PSX) saw a loss of 298 points Tuesday on account of technical correction. Other concerns to this decline came from Moody’s note on rupee depreciation and turmoil in Balochistan Assembly that highlights trouble for the incumbent government.
The benchmark KSE 100-index closed at 42,814 points, showing a decline of 298 points. Selling pressure was witnessed across the board as things remained heated on the political front after PM Khaqan Abbasi was seen busy in a bid to thwart ongoing political crisis in Balochistan by advising Chief Minister Sanaullah Zehri to resign ahead of the ‘no confidence motion’ against him that was scheduled yesterday, commented dealer at JS Global.
Moreover, Pakistan Awami Tehreek (PAT) chief Dr Tahir-ul-Qadri has also announced a countrywide protest movement against the ruling PML-N government from January 17.
On the economic front, the credit rating agency, Moody's stated that the Pak Rupee (PKR) will likely face an ongoing depreciation pressures against the US dollar after a 5% downward adjustment last month. If the PKR depreciates markedly further, the country's central bank will face the difficult challenge of anchoring inflation expectations at moderate levels. The government's debt affordability would also likely weaken further, brokers said.
Sui Gas companies (SNGP up 5% & SSGC up 3%) continued to skyrocket on the back of third LNG pipeline financing.
Top 5 index point decliners were HBL (down 2.4%), UBL (2.2%), OGDC (1%), PPL (1.1%) & HUBC (1.5%) that withheld 184 points from the index gain whereas gainers included SNGP (up 5%), PSO (2.4%), FFC (1.6%), BAHL (2.1%) & NML (3.1%) contributed 108 points.
On the sector front, commercial banks took away 155 points, E&Ps held back 68 points, power 40 points, autos 36 points, pharmaceuticals 23 points, cements 21 points, while on the flip side OMCs added 63 points, textile 15 points & cable 11 points.
Volumes were registered at 225m shares as compared with 270m shares Monday (-17% DoD). Average treaded value also declined by 16% DoD to $88.2m as compared with $104.6m Monday. Stocks that contributed significantly to the volumes included TRG, WTL, PAEL,
SSGC and ANL contributing a total of 83m shares, reflecting 37% share of total volumes, said report of AHL brokerage.