KARACHI: Politics took a heavy toll on the equity market on Tuesday as the dollar-based value of all listed shares dropped to a 12-year low.

Market capitalisation in dollars declined nearly five per cent on a day-on-day basis to $30.7 billion — lowest since June 2010 — on account of “rising political and economic problems,” according to Topline Securities.

Investors continued their overnight selling momentum across the board owing to the unrest on the political front and the devaluation of the rupee, which reached historic lows in the interbank and open markets, said Arif Habib Ltd.

As a result, the KSE-100 index settled at 40,389.07 points, down 978.04 points or 2.36pc from a day ago. The index shed 708 points in the week’s first trading session on Monday.

The trading volume increased 28.8pc to 194.9 million shares while the traded value went up 32.7pc to $26.1m on a day-on-day basis.

Speaking to Dawn, JS Global AVP Mubashir Anis said the primary reason for the fall in share prices is growing political uncertainty. “Investors are getting jittery about political developments derailing the International Monetary Fund (IMF) loan programme and other multilateral flows expected to materialise afterwards.”

He insisted that the fundamentals of listed companies remain strong. Some import-dependent businesses may be more exposed to sudden movements in the exchange rate, but that doesn’t justify the broad-based selling in the stock market, he added.

Mr Anis said the market requires clarity on the IMF programme and the overall macro landscape to calm the jitters and unlock the attractive valuations.

Stocks contributing significantly to the traded volume included K-Electric Ltd (19.62m shares), WorldCall Telecom Ltd (17.67m sha­res), Cnergyico PK Ltd (9.96m shares), Cordoba Logistics and Ventures Ltd (7.94m shares) and Unity Foods Ltd (7.47m shares).

Sectors that took away the highest number of points from the benchmark index included commercial banking (236.12 points), oil and gas exploration (139.97 points), fertiliser (131.05 points), cement (99.93 points) and power generation and distribution (57.26 points).

Shares contributing most negatively to the index included Meezan Bank Ltd (60.73 points), Engro Corporation Ltd (58.11 points), the Hub Power Company Ltd (56.44 points), Pakistan Petroleum Ltd (47.81 points) and Habib Bank Ltd (43.47 points).

Stocks that contributed most positively to the index included Packages Ltd (3.55 points), Nestle Pakistan Ltd (2.14 points), Abbott Laboratories Pakistan Ltd (1.99 points), Kot Addu Power Company Ltd (1.27 points) and First Habib Modaraba (0.82 points).

Foreign investors were net buyers as they purcha­sed shares worth $1.26m. On the local front, mutual funds and insurance companies sold shares worth $3.17m and $1.39m, respectively.

Published in Dawn, July 20th, 2022

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

US aggression
Updated 23 Jun, 2025

US aggression

If there is any state in the world that the international community must be concerned about harbouring weapons of mass destruction, it is Israel.
Finishing the job
23 Jun, 2025

Finishing the job

THE federal health minister’s assertion of a 99pc reduction in polio cases in Pakistan, while impressive on the...
Exam leaks
23 Jun, 2025

Exam leaks

FOR students who put in countless hours of hard work for their secondary school exams — mainly to secure admission...
‘Hybrid’ talk
22 Jun, 2025

‘Hybrid’ talk

IN the past, while most elected governments would at least publicly bristle at the mention of being partners in ...
Farcical nomination
Updated 22 Jun, 2025

Farcical nomination

Many citizens have expressed dismay and embarrassment over this symbolic capitulation to the US presidency.
Sunken dreams
22 Jun, 2025

Sunken dreams

THE heartrending fate of people escaping conflict, deprivation and instability across the globe is among the...