PSX fails to gain momentum, 100 index dips 96 points

KARACHI: The stock market failed to continue the upward trajectory since yesterday when it showed a healthy gain of over 1300 points and instead declined on Tuesday.

The benchmark KSE 100 index declined by 96.62 points, or a decrease of 96.62 points, and closed at 39,199.68 points. The indices witnessed a healthy gain of over 440 points in early trading but could not regain and declined before trading was suspended. The total volume of scripts was 175.615 million valued at Rs7.571 billion.

Meanwhile, the KSE 30 index declined by 79.59 points (-0.44%) and closed at 18,025.45 points. The total volume of scripts was 103.373 million. The top active stocks were MLCF (1.19%), Unity (2.99%), Hascol (6.97%), TRG (6.52%), FCCL (1.11%), followed by PIOC (4.91%), DGKC (2.22%), FFL (1.63%) and EPCL (1.53%).

On Monday, the stock market bounced back and ended up in the green after easing in inflation figures for the month of February. This was augmented by declining global prices for crude oil and stability in global and regional stocks.

Most Asian stocks rose for a second day on Tuesday along with a surge in US stocks as the world prepared for a concerted effort against the coronavirus. Central banks around the world pledged action to provide a boost to the stock market which suffering a battering last week.

Pakistan’s stock market also suffered a hammering last week as it lost over 3000 points and even dropped below 37,000 levels. The preceding week ended on a dismal note as investors were wary of the economic consequences over the coronavirus and stayed away from the stock market. The opening day of the ongoing week raised optimism that inflation figures had receded.

The Pakistan Statistics Bureau released a statement that consumer price inflation has slowed to 12.4 percent for the month of February. The bureau had recorded the highest CPI inflation in January at 14.56 percent, the highest in a decade. Investors are optimistic that declining inflation will lead to an easing of the monetary policy.