PSX loses momentum as KSE 100 index retains minuscule gains

KARACHI: The stock market witnessed a surprising upward trajectory on Thursday but could regain momentum and kept declining before trading was suspended.

The Pakistan Stock Exchange (PSX) opened to welcome start gaining over 941.87 points by noon, witnessing a healthy gain of 3.46 percent before it started to drop. The market opened with a bearish trend before it kept rising but then started to decline again further.

The benchmark KSE 100 index managed to maintain a gain of only 38.40 points (0.14 percent) and closed at 27,267.20 points. The total volume of shares was 157.443 million valued at Rs5.217 billion.

Meanwhile, the lower bench KSE 30 index also witnessed a minor gain of 45.36 points (0.38 percent) and closed at 11,879.19 points. The total volume of scripts traded at the course were 75.616 million.

The stock market was reacting to reports that that State Bank of Pakistan (SBP) was considering stronger measures against the economic and financial effect of the coronavirus crisis. The central bank has issued no such notification leading to subdued investor confidence.

The market was also affected by the depreciation in the Pakistani rupee as the dollar was being traded as high as Rs167.20 in inter-bank trading. Earlier this week, the central bank reduced the policy rate by 150 basis points to 11 percent which has an effect on fiscal deficit amid declining trade volumes.

The stock market has been in free fall as the benchmark KSE-100 index had dropped 28%, or 10,500 points, in the past three weeks amid coronavirus pandemic concerns.