KSE-100 sheds 534 points as geopolitical tensions erase early gains

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KARACHI: Pakistan Stock Exchange (PSX) witnessed a strong rally at the beginning of Tuesday after 100 points cut in the key policy rate by the State Bank of Pakistan. However, this pace could not be maintained, and the market ended in a negative region as the geographical political tension with India increased, forcing investors to sell and adopt cautious stance.

The benchmark KSE-100 index closed at 533.73 points, or 0.47 percent, at 113,568.51 points, lower than 114,102.24 points in the final session. The highest index of the day was 115,093.11 points, while the lowest level was recorded at 113,418.52 points.

Arif Habib Limited analyst Ahsan Mahanti said that the SBP declared a relaxation of a careful policy during the ongoing tension with India, citing the uncertainty of global trade prices and the growing geographical political risks, citing a cautious policy.

He said that Moody’s warning that maintaining India’s tension could damage economic stability, which could endanger external financing and foreign exchange reserves during the Kashmir crisis, also played a key role in the nearby market downturn.

The KSE -30 index decreased by 127.91 points or 0.37 percent to 34,680.69 points by 34,680.69 points.

The shares of the trade increased by 21 million shares by 399.538 million shares by 420.552 million shares. The commercial value increased from Rs 19.852 billion to Rs 23.696 billion. Market Capital has been limited to Rs 13.774 trillion as compared to Rs 13.822 trillion. Of the 453 companies operating in the session, 188 were closed in green, 218 red and 47 changed.

Topline securities analyst, Moola said the trade session was opened on a pleasant note, as investors’ sentiment was eliminated by cutting the 100 BBPS policy rate by the State Bank. Riding on this wave of hope, the benchmark index reached an intra -day height of 990 points. However, the early events were short -term.

As the day is increasing, profit in the key sectors began, gradually eliminated the benefits of the morning. The index eventually succumbed to the pressure selling, hit the intra -day at least 683 points and closed the session at 113,568 levels, which fell 533 points or 0.47 percent.

The renewed geographical political tension between Pakistan and India was primarily driven by the overturning of the market, which made investors anxious and shared the central bank’s stance.

The key heavyweight stocks that provided the above include PPL, OGDC, PSO, UBL, and SYS, which supported +275 points in the index. On the other hand, remarkable dimensions such as fate, HMB, HUBC, EFert, and BAHL collectively shave -427 points, which weighs a lot on overall performance.

PIA Holding Company Limited B recorded the highest increase, which increased from Rs 5,811.59 per share to Rs 5,811.59, followed by Hochast Pakistan Limited, which increased by Rs 93,294.41 per share to Rs 3,294.41. Unilever Pakistan Foods Limited noted a significant reduction, which was reduced by Rs 184.26 to Rs 22,815.74 per share. Nestlé Pakistan Limited followed it, which was reduced from Rs 72.36 to Rs 7,018 per share.

JS Global analyst Mohammad Hassan Athar said that KSE 100 opened a strong note. The rally was deducted by the State Bank of Pakistan (SBP) to 11 % at the expected 100bps rates, which promoted investors’ sentiments. But later the pressure of sales emerged due to geographical political stress. “Looking forward, low borrowing costs should support corporate income, especially in banking, cement, and auto sectors, to support the market hope,” he said.

Sui South Gas remains a volume leader with 54.325 million shares, which closed to Rs 36.08 per share from Rs 3.95 per share. KK Electric Limited, with 42.259 million shares, followed it, which closed at Rs 4.38 per share by 22 money.

Other important business stocks include Dewan Cement, Cohenor Spinning, Attaver Limited, Maple Leaf, DG’s Cement, World Call Telecom, Power Cement and Pak Refinery.

In the futures market, 333 companies recorded trade, of which 128 increased, 202 declined, and 3 did not change.