KSE-100 sheds 440 points as selling pressure persists

The Pakistan Stock Exchange (PSX) witnessed another negative session on Friday, as the KSE-100 lost 440 points to close just above 78,000.

Trading at the KSE-100 remained range-bound throughout the session as the index swayed in both directions.

At close, the benchmark index settled at 78,029.51, down by 439.82 points or 0.56%.

“Range-bound session was observed today as investors preferred to remain on sidelines before the monetary policy meeting on Monday, June 29,” brokerage house Topline Securities said in its post-market report.

Major positive contribution to the index came from BAHL, BAFL, UBL, HUBC and PAKT as they cumulatively contributed 216 points. On the other hand HBL, OGDC, MEBL, PSO and SYS lost value to weigh down on the index by -258 points, the report added.

On week-on-week basis, the KSE 100 declined by 1.6%.

“This decline can be attributed to increase in political noise following government’s reluctance to implement the court’s reserve seat decision in favour of opposition and measures by government to ban opposition party PTI.

“Profit-taking by investors after long consolidation period around 80,000 level was also one of the reason of pressure in market during the week,” Topline Securities said.

Another brokerage house Ismail Iqbal Securities said the index remained volatile on Friday due to the last day of rollover week.

On Thursday, the PSX witnessed a bearish trend as the KSE-100 ended the day with a loss of 928 points.

The State Bank of Pakistan (SBP) will likely cut its key interest rate again on Monday in its first policy meeting following the signing of a staff level agreement with the International Monetary Fund (IMF) and a new state budget, analysts said.

Pakistan and the IMF reached an agreement for the 37-month loan program this month.