Pakistan’s stock market experienced a sharp downturn on Monday, with the benchmark KSE-100 Index dropping by 1,141.5 points, or 1.46%, to close at 77,084.48. The index traded within a wide range of 1,386.85 points, reaching an intraday high of 78,330.09 and a low of 76,943.24. The total trading volume for the KSE-100 Index was 169.49 million shares.
Global Market Turmoil
This significant decline in the KSE-100 Index was in line with a global selloff driven by fears of a deeper U.S. economic slowdown and escalating geopolitical tensions in the Middle East. The uncertainty prompted investors worldwide to abandon riskier assets in favor of safer alternatives.
U.S. stock futures traded sharply lower, with the Nasdaq 100 down more than 4.5%, potentially marking its steepest opening drop in over four years. In Asia, Japan’s benchmark stock index saw its largest one-day fall since October 1987, closing down 12.40%. Taiwan’s stock index also plunged 8.4%, its worst performance since 1967. Cryptocurrencies were not spared either, with Bitcoin falling over 12% and Ethereum experiencing its steepest drop since 2021.
Commodities followed the trend, with oil extending losses to hit a seven-month low, as Brent crude dropped 2.2% towards $75 a barrel. The VIX index, which measures market volatility, surged 115% to 50.3, its highest level since 2020. Even gold, often considered a safe haven during market turmoil, succumbed to the selloff, falling by 1.5%.
Performance of PKR Exchange Rate and Sector-Wise Analysis
The downturn in Pakistan’s stock market coincided with continued pressure on the PKR exchange rate. The PKR depreciated by 12.89 paisa against the USD, closing at PKR 278.63 per USD in Monday’s interbank session. The weakness in the PKR exchange rate reflects broader concerns about Pakistan’s economic stability amid global market volatility.
Sector-wise, the KSE-100 Index was primarily dragged down by Commercial Banks (-423.50 points), Power Generation & Distribution (-179.34 points), Oil & Gas Exploration Companies (-143.93 points), Cement (-119.45 points), and Technology & Communication (-95.22 points). On the positive side, the Fertilizer sector contributed 48.61 points, with other sectors like Leather & Tanneries (+3.14 points), Chemicals (+2.94 points), Textile Weaving (+2.37 points), and Sugar & Allied Industries (+0.32 points) providing some support to the index.
Top Movers and Broader Market Performance
Among individual stocks, AKBL (-6.29%), AICL (-5.05%), CNERGY (-4.50%), NPL (-4.47%), and PIOC (-4.38%) were the top losers of the day. Conversely, YOUW (+31.85%), PKGP (+7.79%), FCEPL (+2.53%), LCI (+2.40%), and EFERT (+1.87%) were the top gainers.
In terms of index-point contributions, HUBC (-193.72 points), HBL (-79.87 points), POL (-73.57 points), SYS (-69.77 points), and BAHL (-66.99 points) were the biggest drags on the index. On the other hand, companies like EFERT (+59.73 points), PKGP (+31.57 points), FFC (+25.92 points), LCI (+9.65 points), and NATF (+4.78 points) helped mitigate the overall decline.
The broader All-Share Index also closed in negative territory, falling by 546.58 points or 1.10% to 49,204.70. Total market volume reached 501.19 million shares, an increase from the previous session’s 443.48 million shares, with a traded value of Rs21.06 billion. Out of 440 companies traded, 129 closed higher, 259 closed lower, and 52 remained unchanged.
PKR Exchange Rate and Market Outlook
The KSE-100 Index has lost 1,360 points or 1.73% during the current fiscal year, while the ongoing calendar year has seen a cumulative increase of 14,633 points, equivalent to 23.43%. The continued volatility in the PKR exchange rate and global economic uncertainties are likely to influence market sentiment in the coming days.
Investors will be closely watching developments in both the local and global economic landscape, especially how the PKR exchange rate performs amid these turbulent times.
PKR DEPRECIATES BY 12.89 PAISA AGAINST USD IN MONDAY’S INTERBANK SESSION
The Pakistani Rupee (PKR) depreciated by 12.89 paisa against the US Dollar during Monday’s interbank session.
GOLD PRICES DROP SHARPLY TO $2,400 AMID PROFIT BOOKING
Gold prices (XAU/USD) faced a sharp decline to around $2,400 during Monday’s European session, succumbing to profit booking after nearing its all-time highs above $2,480. Despite this drop, the overall outlook for gold remains strong as U.S. bond yields hit fresh annual lows.
