The Pakistan Stock Exchange (PSX) opened the week deep in the red on Monday, as the KSE-100 falls 1,964 points in the first full session after the federal government imposed emergency and governor’s rule in Khyber Pakhtunkhwa. The benchmark index closed at 165,124.41, down 1,964.86 points or 1.18 per cent from Friday’s close of 167,089.28.
The session started firmer than it ended. The index first rose to an intraday high of 166,988.32, but sellers took control soon after the open. A short recovery around midday lifted the index to 166,337 by noon, a fall of 752 points at that stage. However, losses grew heavier after 1pm, and the index slid close to its lowest point of the day by the close.
KSE-100 falls 1,964 points: what dragged the market down
Brokerage reports linked the sell-off mainly to politics. President Asif Ali Zardari approved the federal cabinet’s recommendation on Sunday, and emergency and governor’s rule were imposed in KP the same day. As a result, investors faced a new round of political uncertainty at the start of the week, with no clear sign of how long the arrangement will last.
Selling was broad-based. Topline Securities said in its post-market report that the emergency decision had heightened political uncertainty and pushed investors to stay cautious. Index heavyweights led the decline. United Bank, Oil and Gas Development Company, Habib Bank, Meezan Bank and Lucky Cement together took about 645 points off the index.
Other pressures added to the weak mood. Oil prices stayed high, and wider geopolitical tension continued to worry traders. Analysts at Ismail Iqbal Securities said investors were staying on the sidelines because participation was thin and fresh buying triggers were absent.
Trading data showed a busier but weaker market. Volume on the all-share index rose to 362.95 million shares, up from 309.41 million in the previous session. Yet the value of shares traded fell to Rs14.51 billion, down from Rs15.44 billion. In total, 500 companies traded, and only 135 closed higher, while 322 fell and 43 stayed unchanged. Treet Corporation led the volume chart with 27.31 million shares, followed by LSE Financial with 20.83 million and WorldCall Telecom with 20.35 million.
A second sharp fall in a difficult week
Monday’s drop continued a rough run for the market. Only last week, the KSE-100 gave up its gains and closed the week at 167,089 points, down 1,066 points over the week despite a staff-level agreement with the IMF. Before that, on October 6, the index plunged 2,288 points in a single session as political uncertainty first gripped investors.
The pattern matters for readers who track the market. Each of the recent heavy falls has followed a political or regional shock rather than company news. Corporate results in the June quarter came in better than many analysts expected, so the selling reflects risk pricing, not earnings. Still, the index now sits about 2,000 points below its Friday close, and traders say sentiment will stay fragile while the KP situation remains unsettled.
The currency market, by contrast, stayed calm. The rupee extended its recent gains against the US dollar and closed at 276.97 in the interbank market, up three paisa on the day. Meanwhile, the finance minister is in Bangkok for IMF and World Bank meetings, where Pakistan is seeking more than $1 billion from privatisation this year. Any signal from those talks could set the tone for Tuesday’s session. Full closing data is reported by Business Recorder.
How many points did the KSE-100 lose on Monday?
The KSE-100 lost 1,964.86 points, or 1.18 per cent, and closed at 165,124.41. The previous close, on Friday, was 167,089.28 points.
Why did the PSX fall on October 12?
Brokerages blamed political uncertainty after emergency and governor’s rule were imposed in Khyber Pakhtunkhwa on Sunday. High oil prices, regional tension and a lack of fresh buying triggers added to the pressure.
Which stocks dragged the index down most?
United Bank, OGDC, Habib Bank, Meezan Bank and Lucky Cement were the biggest laggards. Together they took about 645 points off the index.
