Following a day of reprieve, the market was once again subjected to selling pressure as a result of fears about rising inflation and impending policy rate rises.
Due to a delay in the $6 billion International Monetary Fund (IMF) program, which was anticipated to commence last week, investors have become cautious.
Furthermore, market players focused on the rupee-dollar parity and rising inflation, both of which would explain the central bank’s position if it raises the policy rate at its next meeting on November 26.
The benchmark KSE-100 index slid 281.70 points, or 0.60 percent, to 46,348.18 points at the closing.
KSE-100 intra-day curve as a benchmark. — PSX data site
The intra-day curve of the benchmark KSE-100 index. — Data gateway for the PSX
According to a report by Arif Habib Limited (AHL), the market began on a bullish note but remained lackluster for the first half of the day.
“Inflation concerns and the depreciation of the Pakistani rupee versus the US dollar produced anxiety for investors, resulting in a profit-booking situation of last-day holdings in the second half session,” the report added.
The banking sector has seen buildup, according to the research, as market players anticipate a rate rise in the future monetary policy.
“As the market experienced large volumes in the third tier equities, activity stayed sideways,” the brokerage firm stated, adding that institutional activity remained lackluster.
Commercial banks (-60 points), exploration and production (-55 points), technology (-40 points), cement (-37 points), and engineering all contributed to the performance (-19 points).
A total of 352 listed firms’ shares were traded during the session. 95 equities ended in the green, 232 in the red, and 25 stayed unchanged at the conclusion of the day.
Overall trading volumes fell to 269.5 million shares, down from 320.3 million on Wednesday. During the day, Rs9.5 billion worth of shares were exchanged.
With 30.2 million shares traded, Ghani Global Holdings was the most active, dropping Rs1.05 to settle at Rs32.19. Service Fabrics came in second with 20.5 million shares, up Rs0.65 to Rs12.09, while Telecard Limited came in third with 14.3 million shares, down Rs0.34 to Rs18.97.