Karachi: Negative session was witnessed at bourse to mark start of week, as benchmark KSE-100 Index lost over 400 points while volumes declined. Volumes remained sluggish across board, with third-tier equities leading pack. At close, KSE-100 Index was down 404.12 points or 0.97 percent to settle at 41,195.07.

Across-the-board selling pressure was witnessed at bourse, as index-heavy sectors including automobile, cement, chemical, commercial banks, oil and gas exploration companies and OMCs settled in red zone.

Sectors driving benchmark KSE 100 index south included banking (105.36 points), oil and gas exploration (59.89 points) and technology and communication (43.77 points).

Volume on all-share index declined to 97.7 million from 120.4 million on Friday, while value of shares traded decreased to Rs 2.8 billion from Rs 3.3 billion recorded in previous session.

WorldCall Telecom was volume leader with 11.45 million shares followed by K-Electric Limited with 9.58 million shares and Air Link Communication with 5.19 million shares. Shares of 314 companies were traded on Monday of which 74 registered an increase, 215 recorded fall and 25 remained unchanged.

Market experts attributed bearish sentiment to volatile political situation and government’s inability to resume IMF’s bailout programme, which remains delayed since November.

“Ongoing political situation and the delay in the IMF programme are driving negative sentiments at equity market,” Sana Tawfik an analyst at Arif Habib Limited said.

Topline Securities brokerage house in report attributed depreciation of currency and delay in resumption of IMF programme as primary reasons behind bearish trend. “Selling pressure also witnessed in E&P sector which can be attributed to decline in international oil prices,” it added.

Published in The Daily National Courier, May, 23 2023

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