Shares at PSX lose 500 points on ‘uncertainty over circular debt’

Bears returned to the trading floor of the Pakistan Stock Exchange (PSX) on Thursday as shares traded in the red and lost more than 500 points.

According to the PSX website, the KSE-100 index closed at 64,298 points, down 524.43 or 0.81 per cent, from the previous close of 64,822.43.

The index had previously maintained an upward trajectory on expectations of measures aimed at addressing economic and circular debt issues. A day earlier, the benchmark index had briefly crossed the 65,000 milestone during intraday trade.

Today, major activity was witnessed in energy stocks such as the Oil and Gas Development Company (OGDC), K-Electric Limited, Hascol Petroleum Limited and Pakistan Petroleum Limited (PPL).

Speaking to Dawn.com, Mohammed Sohail, chief executive of Topline Securities, said that “confusion in circular debt resolution” impacted the share prices of PPL and OGDC, resulting in the index’s downward trend.

A day earlier, caretaker Prime Minister Anwaarul Haq Kakar had directed the energy ministry to present an effective, sustainable and workable strategy for the termination of circular debt, according to state-run Radio Pakistan.

Meanwhile, Yousuf M. Farooq, director of research at Chase Securities, said: “The market experienced increased pressure following the news of revision in the circular debt management plan and a subsequent delay in resolving circular debt.”

This raised concerns among market participants that the circular debt plan might not be executed during the caretaker government’s tenure, he explained.

“With major index weights down and only a few days remaining until the general elections, the market witnessed heightened selling pressure,” Farooq added.

Looking ahead, he continued, the market would be influenced by the upcoming corporate results season, the changing political landscape and the trajectory of interest rates.

Farooq further stated that the political sphere, specifically, served as a wildcard, considering inflationary pressure was expected to ease down over the next year, in addition to expectations of interest rate cuts.

Shahab Farooq, director of research at Next Capital Limited, echoed similar sentiments, saying that uncertainty prompted profit-taking

He added that investors ignored the surprise cut in T-bills cut-off yields, which indicated possible reductions in the interest rate.

from The Dawn News - Home https://ift.tt/PAic6Xo

Comments

The Republican primary race for president in 2024

The Republican primary race for president in 2024 is already shaping up to be a competitive one. There are a number of high-profile candidates who have already announced their intention to run, and more are expected to join the field in the coming months. The frontrunner for the nomination is former President Donald Trump. Trump has been teasing a 2024 run for months, and he has a large and loyal following among Republican voters. However, he is also a polarizing figure, and his candidacy could alienate some moderate Republicans. Another potential contender for the nomination is Florida Governor Ron DeSantis. DeSantis has been praised by many conservatives for his handling of the COVID-19 pandemic and his opposition to vaccine mandates. He is also seen as a rising star in the Republican Party. Other potential candidates include former Vice President Mike Pence, former Ambassador Nikki Haley, and Senator Tim Scott. Pence is a more traditional Republican who could appeal to moderate vote

Police identify person of interest in mass shootings in Lewiston, Maine

Police identify person of interest in mass shootings in Lewiston, Maine Police in Lewiston, Maine have identified a person of interest in the mass shootings that took place on Wednesday, October 26, 2023. The person of interest has not been named, but police have said that they are a male in his early 20s and that he is known to have been in the area at the time of the shootings. The shootings occurred at two separate locations in Lewiston, a city of about 40, 000 people located in central Maine. The first shooting took place at a shopping mall, where two people were killed and several others were injured. The second shooting took place at a nearby apartment complex, where one person was killed and another was injured. Police have said that they believe the two shootings are connected and that they are investigating the possibility that they were motivated by hate. The person of interest is being described as a white male with short brown hair and a beard. He is said to h

All-out war: Israel pounds Gaza after militants infiltrate in a large-scale attack

The current situation in Gaza is very tense. Israel has responded to the large-scale attack by militants by launching airstrikes on Gaza.This has resulted in the deaths of both Israeli and Palestinian civilians. The United Nations has called for a ceasefire, but both sides have so far refused to comply. The consequences of this conflict are devastating. Many people have been killed or injured, and thousands have been displaced from their homes. The infrastructure in Gaza has also been severely damaged, making it difficult for people to access basic necessities such as food and water. The international community is deeply concerned about the situation in Gaza. The United Nations has called for both sides to immediately cease hostilities and to engage in dialogue. The United States and other countries are also working to mediate a ceasefire. It is important to note that there are many different perspectives on this conflict. Some people believe that Israel is right to defen

Infinity Social Updates

Search This Blog