September 29, 2021 (MLN): The benchmark KSE-100 index has lost 1,219 points [12:15 pm] in intraday trade and is currently trading at 44,055.26, hurting by a bill moved in the US Senate to impose sanctions on the Afghan Taliban that could potentially extend to Pakistan.
Speaking to Mettis Global, Shayan Jan, Equity Trader at Intermarket Securities said the bleeding KSE-100 index reflects the investors’ reaction to this news which pushed them towards panic selling.
The market has also been knocked down by the geopolitical tension and the government's tightening measures to combat the surging import bill.
Investors would remain hesitant until and unless the geopolitical situation gets better, he added. With regards to sectors, the current policy moves taken by the government have slashed the investors’ confidence. He also suggested investors to remain cautious while trading given the ongoing economic and political scenario.
Technology & Communication, Cement, and Commercial Banks have witnessed higher selling activity as they have lost around 170, 164, and 108 points respectively.
It is prudent to mention that the cement sector remained under pressure due to a further rise in coal price to USD190.75/MT, as per Ismail Iqbal Securities research.
Company-wise, the scrips of SYS, PTC, TRG, CHCC, DGKC, FCCL, ABL, AKBL, and BAFL have endured the maximum losses.
While on the forex front, strong dollar demand and rising international crude oil prices dragged the Pakistani Rupee (PKR) further as it depreciated by 41 paise against the US dollar in the interbank market.
The domestic unit had been in a free-fall against the dollar for the past month, with the dollar hitting an all-time high at Rs170 on Tuesday.
The dollar was currently being quoted (12:17 PST) at 170.38/170.43 compared to the previous day’s close of 169.97 against the greenback, an all-time low.
Expressing his views on the current situation, Ali Khizar, an Economist said, “The markets – PSX and PKR, are jittery on the developing situation of US against Pakistan and Afghanistan. The bill is presented and it needs to be passed by Senate and Congress -it's a long shot it's not a positive development, but it is not the end of the world either.”
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