Bloodbath at PSX as benchmark index plunges over 2,100 points

[FOOLS_NIGHTMARE]

The Pakistan Stock Exchange (PSX) witnessed a massive selling pressure on Thursday as the benchmark KSE-100 index shed more than 2,000 points.
The market began its slide soon after opening at 45,369.14 points, with the benchmark KSE-100 index down 2,005 points, or 4.42 per cent, by 1:30pm. As per the PSX Rulebook, if the index goes five per cent above or below its last close and stays there for five minutes, trading in all securities is halted for a specified period.
The benchmark index closed at 43,234.15, down 2,134.99 points, or 4.71pc.
Intermarket Securities' head of equities Raza Jafri cited the widening trade deficit as the reason behind the plunge, saying it will keep the rupee under pressure and lead to "aggressive" increases in the interest rate.

"However, it is important to keep in mind that authorities have already commenced macro-course correction while global commodities are coming down due to Omicron [variant of the coronavirus]. There may be an element of one-offs in November imports too and coming months may show better numbers," he added.
The downturn in the market may be treated as an opportunity, he said.
The view was also shared by CEO of Topline Securities Mohammad Sohail who said the "shocking" import bill in November, coupled with the central bank's "aggressive borrowing" in yesterday's T-bill auction were behind the nosedive.
Global trend
Meanwhile, AKY Securities Chief Executive Officer Amin Yousuf noted that stock markets across the world were bearish on the back of countries imposing restrictions to control the spread of the Omicron variant. A similar effect was also seen at the PSX, he added.
The hike in the interest rate by 125 basis points by the State Bank of Pakistan (SBP) during the auction of T-bills was also increasing investors' problems, Yousuf said. In addition, there was an expectation of further hike in the interest rate in the monetary policy announcement on December 14 because of which there was selling pressure in the market, he added.
Meanwhile, the US dollar soared to Rs176.30 in interbank market after gaining Rs1 in value.
Shehbaz holds govt responsible
Separately, PML-N President Shehbaz Sharif said in a statement that the stock exchange had not crashed, the government's economic policy and the steps it had taken had crashed.
"Recently, the government talked about its success. Today, there is a bloodbath at the stock exchange. The stock exchange falling 2,000 points is a sign of investor's distrust in the government's economic policies," he said.
Shehbaz also held Prime Minister Imran Khan responsible for investor's millions going down the drain. "We had warned that the trade deficit and increase in interest rates will kill the economy," he said.
He added that this was the consequence of taking foreign loans and the continuous depreciation of the rupee. He called for putting an end to this "destruction" and said that it was a matter of national security.
Rise in trade deficit, inflation
A day earlier, the government released provisional data that showed trade deficit rose steeply by 162.4pc in the month of November, driven largely by more than triple increase in imports compared to exports from the country.
The reversing trend in trade deficit was witnessed for the fifth consecutive month as merchandise trade deficit reached $5.107 billion in November against $1.946bn over the corresponding month last year. This is the highest trade deficit recorded in a single month in terms of value.
Earlier this week, data released by the Pakistan Bureau of Statistics showed inflation edged up to 11.5pc from 9.2pc, the highest increase noted in the past 20 months influenced by a record hike in fuel prices in October.
The massive rupee depreciation fuelled import-led inflation. Inflation measured by the Consumer Price Index (CPI) increased to its highest level in 20 months — the period when global oil prices kept rising steadily undermining earlier gains.

Bloodbath at PSX as benchmark index plunges over 2,100 points

Analysts cite "shocking" import bill, SBP's "aggressive borrowing" in T-bill auction and global sell-off as reasons for plunge.

www.dawn.com

 

[ARMalik]

Nothing new, happens all the time in PSX.

 

[HttpError]

Nothing new, happens all the time in PSX.

Then PSX people shouldn't be afraid to invest in Crypto because both share mutual volatility levels.

 

[muhammadhafeezmalik]

https://twitter.com/x/status/1466473525204693002

https://twitter.com/x/status/890880354780934144

 

[Imran Khan]

stock markets go up and down its nature of stock markets

 

[AZ1]

Not even worse than april.


Lets check overall

 

[Maula Jatt]

This really was bloodbath, pretty bad to say the least...

 

[AZ1]

This really was bloodbath, pretty bad to say the least...

thats how stock market works. Good chance again for investors to buy good shares.

 

[ARMalik]

Then PSX people shouldn't be afraid to invest in Crypto because both share mutual volatility levels.

Very true. PSX is really a Casino.

 

[Bhoot Pishach]

​

Seriously is this true??

What is this???

https://twitter.com/x/status/1466647603395928064

https://twitter.com/x/status/1466649039785668612

 

[FOOLS_NIGHTMARE]

BEARS RULE PSX FOR SECOND STRAIGHT DAY AS 100-INDEX DOWN BY 311 POINTS

Pakistan Stock Exchange (PSX) could not recover the trust of the investors as the benchmark index lost 311 points at the start of the last business day of the week, ARY News reported.

According to details, the KSE 100-index lost 311 points on the initial trading and failed to keep the level of 43,000 points.

According to the market experts, widening of trade deficit is the reason behind the plunge, saying it will keep the rupee under pressure and lead to “aggressive” increases in the interest rate.

It may be noted that the trade deficit for the month of November was recorded at $5.1 billion, the highest-ever in the country’s history.

Read more: Foreign reserves decline by US$ 244 million: SBP

Yesterday, Pakistan equities witnessed a major bloodbath during Thursday’s session where benchmark KSE100 Index settled at 43,234 level (down 4.71%).

The PSX had opened on a negative note making an intraday low of 2,282 points as investors were concerned over multiple things like soaring trade deficit and higher than expected secondary market yields.

Sectorwise, Cement, technology, E&PS and fertilizers were major laggards in the trading session.

Bears rule PSX for second straight day as 100-index down by 311 points

KARACHI: Pakistan Stock Exchange (PSX) could not recover the trust of the investors as the benchmark index lost 311 points at the start of the last

arynews.tv

 

[Ahmed_Vohra]

I guess investors the world over are crying. Thanks to the Omicron vraint.

 

[FOOLS_NIGHTMARE]

Bearish spell persists at PSX, KSE-100 index falls below 43,000-point mark

— AFP/File

• Today, at the close, the benchmark KSE-100 index fall by 519.41 points to close at 42,876.37.
• Investors are keeping a close eye on the monetary announcement scheduled tomorrow, as they expect SBP to raise policy rate by 100 bps.
• The bourse last fell below the 43,000-point mark on March 11 (42,779,76).

KARACHI: The bears continued to hold sway at the stock market for the fourth consecutive session on Monday as the benchmark KSE-100 index fell over 500 points and closed below the 43,000-point mark after hiatus of nine months.
It may be recalled the bourse last fell below the 43,000-point mark on March 11 (42,779,76).
The investors are keeping a close eye on the monetary announcement scheduled tomorrow, as they expect the central bank to raise the policy rate by 100 basis points.
Constant depreciation of the rupee against the US dollar coupled with concerns over the mini-budget kept market trading in a narrow range throughout the day.
Adding fuel to the fire, the news of confirmation of Pakistan's first-ever case of the Omicron variant took a toll on investor sentiment as the market expected the government to impose stricter measures in order to curb the spread of the new variant.

Benchmark KSE-100 index trading curve. — PSX data portal
Earlier, trading began on a positive note, however, the lack of positive triggers pulled the KSE-100 index into negative territory within the first hour.
As uncertainty prevailed, the index oscillated between red and green zones throughout the day. The market saw significant profit booking in the final hour and resultantly, it closed with a loss.
Today, at the close, the benchmark KSE-100 index fell 519.41 points, or 1.20%, to close at 42,876.37 points.
A report from Topline Securities noted that Pakistan equities closed red today where the benchmark KSE-100 Index settled at 42,876.
“Investors are waiting for the monetary policy announcement which is due tomorrow,” it said, adding that the market opened on a positive note, however, the KSE-100 index came under pressure and traded negatively throughout the day touching an intraday low of 589 points.
“Major negativity came from the technology and communication sector where TRG Pakistan and Systems Limited cumulatively dented the index by 136 points, further profit-taking was witnessed in the financial sector as UBL, MCB and MEBL were the major laggards,” the brokerage house reported.
Shares of 331 companies were traded during the session. At the close of trading, 65 scrips closed in the green, 250 in the red, and 16 remained unchanged.
Overall trading volumes dropped to 150.4 million shares compared with Friday’s tally of 179.2 million. The value of shares traded during the day was Rs5.3 billion.
WorldCall Telecom was the volume leader with 18.3 million shares traded, losing Rs0.18 to close at Rs1.70. It was followed by Byco Petroleum with 7.3 million shares traded, losing Rs0.03 to close at Rs5.65, and Fatima Fertiliser Company with seven million shares traded, losing Rs0.24 to close at Rs34.76.

Bearish spell persists at PSX, KSE-100 index falls below 43,000-point mark

Today, at the close, the benchmark KSE-100 index fall by 519.41 points to close at 42,876.37.Investors are keeping a close eye on the monetary announcement scheduled tomorrow, as they expect SBP to raise policy rate by 100 bps.The bourse...

www.geo.tv

 

[tman786]

Markets down everywhere. So?

 

[AZ1]

Markets down everywhere. So?

OP himself never bought any stock in his life nor in pakistan but worry about it.