KARACHI: After a strong start following an overnight record closing, the stock market tumbled on Wednesday as equity investors became unsettled by the election of Donald Trump as the 47th president of the United States, pushing the KSE 100 index into the red.
Talking to Dawn, Tahir Abbas of Arif Habib Ltd said a section of investors indulged in profit-taking after Trump’s win, fearing a change of policies towards Pakistan with a change of leadership at the White House.
However, he added that side-by-side buying at dips supported the index in trimming its losses.
The benchmark KSE-100 index hit an intraday high of 92,966.95, a gain of 662.62 points, and a low of 91,891.47, down 412.85 points. However, it settled at 92,021.44 after losing 282.88 points or 0.31pc day-on-day.
Mr Abbas ruled out any immediate change in US economic policy after the new president takes the oath of office in January.
Presently, Pakistan enjoys a nearly $3.5bn annual trade surplus as exports to the US totalled $5.4bn against imports of $1.9bn.
“Obviously, the new US government would have different policies, but in a broad picture, Pakistan would not be a priority, although the new president may have country-specific views on trade and economic partnerships,” he observed.
“In the short run, all eyes are on global commodities prices after the US presidential election results. Any major fall will benefit Pakistan,” observed Topline Securities Ltd Chief Executive Mohammed Sohail.
However, Ahsan Mehanti of Arif Habib Corporation said stocks closed sharply lower amid consolidation post-earnings season.
He added the rupee instability, weak global crude prices, and uncertainty over the outcome of the IMF’s first review on the Extended Fund Facility amid tax collection shortfalls and pending China energy debt also contributed to a downtrend at the PSX.
The index was weighed down by negative contributions from Systems Ltd, United Bank Ltd, Bank Al-Habib Ltd, Pakistan Petroleum Ltd, and Oil and Gas Development Company, which collectively subtracted 339 points.
On the other hand, Lucky Cement, Sazgar Engineering Works Ltd, and Kohat Cement helped offset some of these losses, adding 94 points.
The trading volume rose 18.13pc to 889.16m shares while its value fell 7.16pc to Rs30.47 day-on-day.
Mutual funds picked shares worth $2.47m while foreigners remained net sellers as they sold shares worth $0.02m.
Published in Dawn, November 7th, 2024
