KSE-100 index sees rocky start but closes in the green

Published July 22, 2022
This image shows the activity on the KSE-100 index on Friday. — Photo courtesy: Pakistan Stock Exchange website
This image shows the activity on the KSE-100 index on Friday. — Photo courtesy: Pakistan Stock Exchange website

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index on Friday plunged by more than 290 points during intraday trading, but later recovered to close above the 40,000-mark that was breached yesterday.

According to the PSX website, stocks initially started in the green. However as the day progressed, the index bottomed out at 39,541 by 11:30am, sliding 290.75 points from yesterday’s close of 39,831.75.

The index then made a slight recovery, reaching 39,726.48 points before the prayer break. By closing time, the index climbed further to 40,077.30 points. The cumulative change was a positive 0.62 per cent.

Head of research at Intermarket Securities Raza Jafri said that the KSE-100 index was “so far holding its ground better than the last few days”.

“The State Bank of Pakistan (SBP) is indicating that concerns about Pakistan are unfairly overblown and this can help calm down markets,” he said.

Ahsan Mehanti of Arif Habib Corporation said bearish activity was “witnessed in the earnings season amid thin trade on political noise and weak rupee”.

Fertiliser and energy stocks outperformed on rising local prices, he noted.

He added that the slump in global crude oil prices and investors’ concerns regarding economic uncertainty played a catalyst role in bearish activity.

Salman Naqvi, head of research at Aba Ali Habib Securities, said that the country’s current economic situation was having an effect on the stock market.

The dollar appreciated today too and is continuously on the rise, he pointed out, adding that the primary reason for this was “political uncertainty”.

He went on to say that there was a continuous increase in the trade deficit as well as inflation, which had an impact on the stock market.

He warned that this would persist as long as political uncertainty prevailed.

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

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.