Stocks on Wednesday retreated, snapping a four-day winning streak, as investor sentiment took a hit following economic projections by the International Monetary Fund (IMF) and Fitch Ratings.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index closed at 117,226.14, down 1,204.21 points or 1.02% from the previous close of 118,430.35. The index touched an intraday high of 118,811.24 and a low of 117,120.39.
Trading volumes stood at 242.5 million shares, with the total value of traded shares recorded at Rs18.6 billion.
Traders walked on eggshells throughout the session, alarmed about the country’s economic outlook as well as the possibility of further pressure on the currency.
Topline Securities, a brokerage, in a note said that after four consecutive sessions of bullish momentum, bears made a forceful comeback on the local bourse today.
“This reversal in sentiment can largely be attributed to escalating regional geopolitical tensions, which prompted investors to adopt a cautious stance and lock in recent gains,” the brokerage said.
The downward trajectory of the index was significantly influenced by negative contributions from key stocks, including United Bank Limited (UBL), Hub Power Company (HUBC), Habib Metro Bank (HMB), Mari Petroleum Company (MARI), and Engro Corporation Limited (ENGRO), which collectively dragged the index down by 526 points.
Despite the decline, investor participation remained robust, with total traded volume reaching 604 million shares and market turnover amounting to Rs27.7 billion. Bank of Punjab (BOP) led the volume chart, with 58 million shares changing hands.
In its latest World Economic Outlook, the IMF downgraded Pakistan’s growth forecast for the current fiscal year from 3% to 2.6%, citing slower-than-expected recovery.
Adding to the cautious mood, Fitch Ratings said Pakistan is likely to let the rupee weaken gradually to ease pressure on the current account as economic activity increases, according to Bloomberg.
