Skip to main content

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
Labels:

Comments

Post a Comment

Popular posts from this blog

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...
1 comment
Read more

Ministers rubbish notion that proposed retirement age extension to favour ‘one particular institution’

Information Minister Attaullah Tarar on Tuesday rubbished the notion that a proposed extension in the retirement age was to favour “one particular institution”, adding that the move would be implemented across the board if approved. The rebuttal comes in the wake of media reports claiming that the government was mulling changes to the Constitution to fix the tenure of the chief justice . Currently, judges of the Supreme Court, including the chief justice, retire after attaining the age of superannuation, i.e. 65 years, as stipulated in Article 179 of the Constitution. While giving his opinion recently on the reports of the constitutional amendment, Law Minister Azam Nazeer Tarar had said he “will not vehemently turn down the proposals related to the tenure of the chief justice”. Addressing the issue during a press conference in Islamabad today along since Finance Minister Muhammad Aurangzeb and the law minister, Attaullah said the extension in the retirement age was “a proposal to a...
Post a Comment
Read more

In noisy NA session, Bilawal endorses PTI’s call for judicial inquiry into May 9 riots

In his maiden speech during a session of the newly elected National Assembly, PPP Chairman Bilawal Bhutto-Zardari on Monday endorsed the PTI’s call for a judicial inquiry into the May 9 riots. He passed these remarks in reference to Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur’s recent call for the formation of a judicial commission to probe the violent protests that erupted across the country following PTI founder Imran Khan’s arrest on May 9 last year. “I call upon the chief justice Supreme Court of Pakistan (Justice Qaez Faiz Isa) to form [a judicial commission] and see who are the beneficiaries [of May 9],” Gandapur had said in a fiery speech after being elected the chief executive of KP. Speaking on the floor of the lower house of the Parliament today, Bilawal said he endorsed Gandapur’s demand. But at the same time, he stated that the result should be accepted by everyone, including the Imran-led party. “It is not possible that someone attacks our institution and th...
Post a Comment
Read more