Selling returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index losing over 600 points during the opening hours of trading on Monday.
At 11:15am, the benchmark index was hovering at 113,652.79 level, a decrease of 602.93 points or 0.53%.
Selling was observed in key sectors including chemical, commercial banks, fertilizer, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including NRL, PRL, HUBCO, OGDC, PPL, POL, PSO, SHEL, SNGPL and MCB traded in the red.
“Market will be watchful of politics, especially PTI trying to stage another rally by 8 February,” said Intermarket Securities.
“Global markets are under pressure, but that will have no impact on the Pakistan market, which has been driven mostly by domestic liquidity. We advise profit taking on higher levels; however, energy stocks have been under pressure lately and could be offering attractive levels,” it added.
Last week, the PSX remained under pressure as the investors opted to offload their holdings on available margins. The benchmark KSE-100 index declined by 624.76 points on week-on-week basis and closed at 114,255.73 points.
Internationally, Chinese stocks listed in Hong Kong slid on Monday and the yuan sank to a record low in offshore trade on their return from the Lunar New Year holidays, as fears of a trade war heightened after US President Donald Trump imposed sweeping tariffs.
The Hang Seng China Enterprises Index lost 1.8% in early trade, and the Hang Seng Tech Index tumbled 2.5%, the biggest drop in more than two months.
Hong Kong’s benchmark index lost 2.1% to a one-week low.
Hong Kong’s markets reopened on Monday while those on the Chinese mainland resume trade on Wednesday.
The offshore yuan weakened to 7.3512 against the dollar, having earlier pushed to a record low of 7.3765 yuan.
Trump slapped China with a 10% levy at the weekend as he had threatened last month, calling the measures necessary to combat illegal immigration and the drug trade.
This is an intra-day update
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