Market Update: Karachi Stocks Take a Hit Amid Geopolitical Tensions
Hey there, traders and investors! If you’ve been keeping an eye on the Pakistan Stock Exchange (PSX), you probably noticed that Friday was a tough day for the market. The KSE-100 index dropped over 1,430 points, settling at around 163,100. Ouch!
So, what’s behind this bearish trend? Well, a combination of profit-taking and rising geopolitical tensions has put a damper on investor enthusiasm. Reports of alleged military strikes by Pakistan’s armed forces against a TTP leader in Afghanistan have rattled nerves. With investors feeling jittery, it’s no surprise to see some volatility in trading.
In numbers, a staggering 1.40 billion shares were exchanged, valuing at a hefty Rs47.79 billion. Major laggards included familiar names like Engro Holdings, Systems Ltd, and MCB Bank, which collectively took the index down by about 732 points. Meanwhile, just to add some context, the benchmark index has experienced losses every day this week, down 3.49% week-on-week.
Looking at the broader economic picture, inflation measured by the Sensitive Price Indicator (SPI) rose 4.34% year-on-year, while car sales surprisingly surged by 20% month-on-month in September. Analysts are now eyeing key support levels and resistance points, estimating support around 160,000-162,000 and resistance at about 167,000.
Out of all the actively traded stocks, only 18 managed to advance while a hefty 81 declined. While companies like Fauji Fertiliser and Maple Leaf Cement saw gains, the downtrends in stocks like Engro Holdings (-2.88%) and Systems Ltd (-3.21%) contributed largely to the negative session.
In terms of trading volumes, K-Electric emerged as the volume leader, trading nearly 200 million shares, up by Rs0.21 to close at Rs7.13. On the flip side, foreign investors offloaded shares worth Rs720.4 million, highlighting the cautious mood in the market.
All in all, it’s been an unsettling week for investors in Karachi. Remember, markets can go up and down, but staying informed and adaptable is key. If you’re looking for further insights or strategies on navigating these market fluctuations, feel free to connect with Pro21st. We’re here to help you thrive!
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