Stock market falls by 917 points after arrest of Shahbaz Shareef

Komal FatimaWeb Editor

28th Sep, 2020. 04:26 pm

Pakistan stock market fell by 917 points soon after the arrest of Pakistan Muslim League Leader Shahbaz Sharif.

According to the initial updates, PSX-100 index reached 40,783 on Monday today.

Stock experienced bearish trend

PSX experienced a bearish trend during the last week ended on 25th September.

BRIndex100 lost some 105.24 points to close at 4,333.81 points end of last week compared to 4,439.05 points a week earlier. Average daily volume at BRIndex100 stood at 428.8 million shares.

During the last week, BRIndex30 was declined by 674.68 points to close at 22,001.87 points down from 22,676.55 points with average daily turnover of 250 million shares.

The benchmark KSE-100 Index closed at 41,701 points, down 803 points or 1.9 percent WoW. At the local bourse, investors chose to reduce participation as average daily trading volumes dropped by 13 percent WoW to 465.5 million shares as compared to previous week average trading volume of 537.3 million shares. During the last week, market capitalization was down from Rs 7.945 trillion to Rs 7.819 trillion.

Analysts at Arif Habib Limited said that the index continued trading in the red zone for another week and primary concerns that kept investors’ sentiment bearish included a major sell-off witnessed in international markets on the back of rising Coronavirus cases internationally, particularly in Europe.

They said that positive economic developments such as a surplus on the Current Account ($297 million) witnessed for the second consecutive month failed to uplift sentiment. Moreover, the SBP maintained interest rates at the current levels in its MPC meeting.

According to Topline, major events during the outgoing week were textile sector export numbers for Aug-20 which witnessed a 15.35 percent YoY decline to $1.007 billion, policy rate unchanged at 7 percent,) dispute between government and IPPs, where the latter has refused to sign the final MoUs with government until they clear their dues which run to the tune of Rs 300-400 billion and Competition Commission of Pakistan (CCP) search at All Pakistan Cement Manufactures Association (APCMA) office in Lahore for possible anti-competitive activities.

Sector-wise negative contributions came from Oil & Gas Exploration, Commercial Banks, Power Generation & Distribution, Cement, and Technology & Communication. Whereas, positive contributions came from textile composite.

Analysts at JS said that the outgoing week began with political noise surfacing post All Parties Conference over the weekend, which continued almost throughout the week. At the local bourse, investors chose to reduce participation as average daily trading volumes dropped by 13% WoW while the benchmark index also closed lower.

Banks agree to provide account holders’ information to FBR, Pakistan’s budget deficit improves to Rs 440 billion (0.9 percent of GDP) during two months of FY21, massive gas deficit feared in winter over gas supply halt from some fields and removal of duties on 169 HS Codes associated with textile sector approved by the Economic Coordination Committee (ECC) were other key news during the last week.

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