Skip to main content

PSX Sacrificed at the Altar of a Constitutional Crisis.

43,902-1,250 (-2.77%)

Was straight down with hardly any respite.


Trading volume was however low i.e. just 170mn shares compared to 388mn previous day, indicating that most decided to hold instead of selling in panic. Cement and Banking sectors were major contributors to the decline.

Not much Foreign selling however. Mutual Funds also just marginally net sellers. Individuals did some bargain hunting and were net buyers. Read More

So PSX is not selling higher selling pressure. This is a good sign, and as earning reporting season starts PSX may again find its footing. But all eyes on the Supreme Court of Pakistan whether it can uphold sanctity of law and due process. 

Going forward things dicey. Any coming government has to deal with continuation of IMF program and take painful decisions like increasing oil price. The previous PTI government had not changed oil prices in line with international oil prices, most probably anticipating their ouster. If an interim government comes into place, that will not have necessary mandate for tough economic decision. 

MSCI Frontier Asia Index, that includes Pakistan, has seen its worst quarter in 2years. See graph


Popular posts from this blog

Brent Crude Logs Biggest Weekly Drop Since September on Weak Demand, Easing Tensions

Oil prices were under pressure this week. Brent crude oil futures fell 1.9% to $73 per barrel on Friday, registering the biggest weekly loss since early September, with prices dropping over 7%. The decline was attributed to weaker demand forecasts from OPEC and the International Energy Agency (IEA), slowing economic growth in China, and signs of easing geopolitical tensions in the Middle East. Both OPEC and the IEA revised down their demand forecasts for 2024 and 2025. China's refinery output declined for the sixth consecutive month, impacted by weak fuel demand and the growing adoption of electric vehicles (EVs). Meanwhile, U.S. crude oil production reached a new record last week. Although a drawdown in U.S. crude inventories and stronger-than-expected retail sales in September provided some support to oil prices, easing concerns about a broader conflict in the Middle East exerted additional downward pressure on the market.
Read more
 A Snapshot of Exchange Traded Funds at PSX
Read more

PSX Strongly Rebounds

The Pakistan Stock Exchange (PSX) reacted positively to the conclusion of the IMF staff-level agreement and has now recovered a substantial part of the losses sustained on Monday. Today, out of the 1,139-point gain in the KSE-100 Index, around 800 points were contributed by UBL, OGDC, PPL, and Meezan Bank.
Read more