KARACHI: The two-day rally at the stock market came to a halt on Wednesday when the KSE-100 index succumbed to selling pressure, showing a loss of 300 points, or 0.65 per cent, to close at 45,682.
Besides the fact that the 46,000 level has forever proved to be a strong resistance, the investors were spooked by the political events that created a degree of uncertainty.
“Rifts between the senior members of the ruling party put the market in a bearish frame of mind,” traders said. Apart from that, the fear of an increase in Covid cases remained a key concern for the investors which overshadowed news relating to a possible market-friendly budget.
Stocks wobbled on Wednesday, snapping a two-day winning streak, after reports of a likely split in the ruling party spurred selling, dealers said.Pakistan Stock Exchange’s KSE-100 Shares.
KARACHI: The stock market extended rally for the second day with the KE-100 index recording gains of 185.51 points, or 0.41 per cent, to close at 45,981.82.
The index faced stiff resistance at the 46,000 level, though intraday it managed to cut through the barrier and post the high of 46,034.46. Market watchers calculated that the index was able to breach the barrier of 46,000 (intraday) after 47 sessions. During the day’s trading the index swung between the high and low of 238 and 178 points.
The investors’ appetite for risky asset returned on several positive developments which included the sharp decline in Covid-19 positive ratio to 8.61pc; record high remittances of $2.778bn received in April and the country’s foreign exchange reserves rising to $22.91bn.
Market watch: KSE-100 rises on return from holidays
Benchmark index gains 621.64 points to close at 45,796.31
PHOTO: ONLINE
KARACHI:
Bulls dominated trading at the Pakistan Stock Exchange (PSX) during the first trading session on Monday after the week-long Eid holidays amid renewed optimism.
Market players took cue from a host of positive developments during the week. Investor sentiment, which kept on fluctuating on the last trading day (May 6) before the long break, settled down due to clarity on the economic front.
A drop in Covid-19 cases coupled with positive expectations about the upcoming budget kept the investment climate attractive.
Lending further support to the rally, Morgan Stanley Capital International (MSCI) on Wednesday (May 12) conducted a semi-annual review to recompose its global indexes.