Pakistani stocks nosedive after rupee slides against USD

Islamabad, July 16 (IANS) The Pakistan Stock Exchange (PSX) fell sharply on Monday as investors resorted to panic selling after Pakistani rupee slumped to a record low against the US dollar in the money market, fanning concerns over the health of the country’s economy.

The Pakistan Stock Exchange’s benchmark KSE 100-Index plunged by 1.50 percent or 605.23 points to close at 39,665.77 points on Monday when compared with a closing of 40,271.00 points reported on Friday, reported Xinhua news agency.

The key index is currently trading 24.98 percent or 13,210.69 points below its all-time historic peak of 52,876.46 points achieved on May 24, 2017.

The main index has declined by 1.99 percent or 805.71 points since the start of the ongoing year whereas it has lost 14.82 percent or 6,899.52 points since July 1, 2017. The top Pakistani equity market has plummeted by 5.36 percent or 2,245.13 points since July 1, 2018.

During Monday’s trading session, the main index moved in a healthy range of 1,068.49 points as it touched an intra-day high of 40,464.86 points as against an intraday low of 39,396.37 points.

The KSE All-Share Index shrank by 1.51 percent or 444.04 points to close at 28,920.02 points, the KSE 30-Index dipped by 1.68 percent or 333.50 points to end at 19,531.94 points, the KMI 30-Index nosedived by 1.73 percent or 1,159.58 points to conclude at 65,975.10 points, whereas the Islamic All-Share Index trimmed down by 1.23 percent or 241.95 points to finish the trading session at 19,476.43 points.

Market analysts told Xinhua that the market was already under the influence of the latest rate hike by the State Bank of Pakistan but the rapidly falling local currency brought an additional wave of panic to the trading hall.

Market volumes expanded by 18.22 percent or 22.730 million shares to 147.480 million shares on Monday when compared with a trading of 124.749 million shares reported on Friday.

Among 348 active scrips on Monday, the prices of 236 issues declined, 83 advanced, whereas values of 29 other companies stayed unchanged at the previous week’s levels.(IANS)