Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty. Rupee cross 305’

[HAIDER]

Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty’​

Talqeen Zubairi Published August 31, 2023 Updated 3 minutes ag

0

This image shows activity on the Pakistan Stock Exchange on Thursday. — Photo courtesy PSX website
LISTEN TO ARTICLE1x1.2x1.5x
Stocks suffered losses for the fifth straight session on Thursday, bleeding more than 1,700 points on the back of rumours of a hike in interest rates, economic uncertainty, and the unrelenting depreciation of the rupee.
The bourse stayed flat for 10 minutes after the opening bell. However, at 9:40am, the market began its gradual slide with the KSE-100 eventually losing 659 points by 12:00pm, sinking to 45,584.62. After 2:50pm, the market plunged steeply — by 1,784.93 points — to reach a low of 44,459.62. When trading closed, it corrected itself to 45,002.41, down 1,242.14 points, or 2.69pc from the previous day’s 46,244.55.
The last time the market plunged so sharply (by over 1,500 points by day’s end) was after then-prime minister Shehbaz Sharif’s announcement of a 10pc “super tax“ on large-scale industries in June 2022.
Intermarket Securities’ Equity head Raza Jafri told Dawn.com that the KSE-100 continued to be under severe selling pressure owing to a lack of confidence emanating from a weak economy, particularly the depreciating rupee.
“While value buyers may return if the dip extends, meaningful valuation rerating needs clarity to return,” he added.
Arif Habib Corp analyst Ahsan Mehanti echoed Jafri’s viewpoint, saying stocks fell across the board on economic uncertainty amid a slump in the rupee and a likely hike in interest rates owing to high inflation.
“The caretaker finance minister’s assertion of a lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in [yesterday’s] bearish close,” he said.
The market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps, noted JS Global in its daily report.
KASB Securities chairman Ali Farid Khawaja told Dawn.com that investor sentiment “is very fragile”. “Any comment around political instability worries the market,” he said.
However, in Khawaja’s view, the bearish trend “will be short-lived” as he expects the market to recover. “We have seen similar volatility in the past as well.” He said reports of the Saudi crown prince’s visit to Pakistan “should be a strong catalyst for investor sentiment”.
Yousuf M. Farooq, director of research at Chase Securities, said market sentiment has changed over the last few days because of the anticipation of a rate hike.
“The market is expecting higher rates on changing expectations for inflation on the back of a continuously sliding rupee, higher oil and electricity prices and an anticipation of second-round impacts.”
He added that higher interest rates mean a higher cost of capital and cheaper stock prices.
“The market on the other hand is extremely cheap when compared to other crisis-ridden countries. The PSX is trading at three-four times earnings and earnings, dividends and buybacks have remained robust.”
Investor Jibran Sarfaraz told DawnNewsTV said a reduced inflow of dollars and the rumours circulating about an impending interest rate hike — by an expected 2 to 3pc — have resulted in the sell-off.
“You can see there is pressure on the market because of this, and the dollar [rate] is also increasing day by day which is creating problems for importers and investors are worried.”
He said until economic and political stability returns, “nothing can be done”.
Sarfaraz’s solution: controlling inflation and, by extension, the interest rate. “Whichever government comes to power should focus on stabilising the dollar [and inflation]. The more interest rates stay high, the more investors will hesitate.
“Unless the interest rate eases, investors won’t come because they’re getting 22-23 pc interest rates [by stowing their money in banks]. They will move where the higher profit margin is higher.”
Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

 

[ghazi52]

,..,

Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty’​

KSE-100 index down by 1,242 points by close; analysts also cite finance minister's assertion of "lack of fiscal capacity" to give relief on power bills as one of the reasons.

 

[ghazi52]

.,.,

PSX crashes by over 1,750 points as rupee continues to struggle against USD​

Local currency hits all-time low of 305.6 against greenback

 

[koolio]

Where is foolsnightmare and mohammedhafeez they should be celebrating for this special achievement, like I said before Pakistan is sinking day by day, it's now beyond Establishments control to fix things.

 

[Jango]

Where is our very own Warren Buffet? His Highness Lt Gen Babar Iftikhar jo tank kay bajaye stock market kay expert hain. Stock market upar gayi, dollar neechay aya!

Somebody post that infamous picture again please

 

[ziaulislam]

Well gentlemen..this isn't worse

It's just starting

 

[PakFactor]

Well gentlemen..this isn't worse

It's just starting

View attachment 950131

I was about to tag you in this thread, accidentally hit refresh, and you came out James Bond style. Lol

 

[Trango Towers]

Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty’​

Talqeen Zubairi Published August 31, 2023 Updated 3 minutes ag

0

This image shows activity on the Pakistan Stock Exchange on Thursday. — Photo courtesy PSX website
LISTEN TO ARTICLE1x1.2x1.5x
Stocks suffered losses for the fifth straight session on Thursday, bleeding more than 1,700 points on the back of rumours of a hike in interest rates, economic uncertainty, and the unrelenting depreciation of the rupee.
The bourse stayed flat for 10 minutes after the opening bell. However, at 9:40am, the market began its gradual slide with the KSE-100 eventually losing 659 points by 12:00pm, sinking to 45,584.62. After 2:50pm, the market plunged steeply — by 1,784.93 points — to reach a low of 44,459.62. When trading closed, it corrected itself to 45,002.41, down 1,242.14 points, or 2.69pc from the previous day’s 46,244.55.
The last time the market plunged so sharply (by over 1,500 points by day’s end) was after then-prime minister Shehbaz Sharif’s announcement of a 10pc “super tax“ on large-scale industries in June 2022.
Intermarket Securities’ Equity head Raza Jafri told Dawn.com that the KSE-100 continued to be under severe selling pressure owing to a lack of confidence emanating from a weak economy, particularly the depreciating rupee.
“While value buyers may return if the dip extends, meaningful valuation rerating needs clarity to return,” he added.
Arif Habib Corp analyst Ahsan Mehanti echoed Jafri’s viewpoint, saying stocks fell across the board on economic uncertainty amid a slump in the rupee and a likely hike in interest rates owing to high inflation.
“The caretaker finance minister’s assertion of a lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in [yesterday’s] bearish close,” he said.
The market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps, noted JS Global in its daily report.
KASB Securities chairman Ali Farid Khawaja told Dawn.com that investor sentiment “is very fragile”. “Any comment around political instability worries the market,” he said.
However, in Khawaja’s view, the bearish trend “will be short-lived” as he expects the market to recover. “We have seen similar volatility in the past as well.” He said reports of the Saudi crown prince’s visit to Pakistan “should be a strong catalyst for investor sentiment”.
Yousuf M. Farooq, director of research at Chase Securities, said market sentiment has changed over the last few days because of the anticipation of a rate hike.
“The market is expecting higher rates on changing expectations for inflation on the back of a continuously sliding rupee, higher oil and electricity prices and an anticipation of second-round impacts.”
He added that higher interest rates mean a higher cost of capital and cheaper stock prices.
“The market on the other hand is extremely cheap when compared to other crisis-ridden countries. The PSX is trading at three-four times earnings and earnings, dividends and buybacks have remained robust.”
Investor Jibran Sarfaraz told DawnNewsTV said a reduced inflow of dollars and the rumours circulating about an impending interest rate hike — by an expected 2 to 3pc — have resulted in the sell-off.
“You can see there is pressure on the market because of this, and the dollar [rate] is also increasing day by day which is creating problems for importers and investors are worried.”
He said until economic and political stability returns, “nothing can be done”.
Sarfaraz’s solution: controlling inflation and, by extension, the interest rate. “Whichever government comes to power should focus on stabilising the dollar [and inflation]. The more interest rates stay high, the more investors will hesitate.
“Unless the interest rate eases, investors won’t come because they’re getting 22-23 pc interest rates [by stowing their money in banks]. They will move where the higher profit margin is higher.”
Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

It's all manipulated anyways.

 

[N.Siddiqui]

 

[truthseeker2010]

View attachment 950155

To all the khaki fanboiz!

 

[SaadH]

 

[N.Siddiqui]

The economic uncertainty and instabilty taking its toll, was bound to happen, reaching the tipping point.

Just some good news about elections about to be held in three months would bring in good sentiments and with it news about cases against PTI members quashed and 10,000 supporters and PTI members being released.

Some CBM's between the neutral duffers and PTI, some reconciliaton with IK, anything would do.

The country was taken for a ride and now devastated for the whims and fancy of a few Generals, their bloated egos and insatiable greed for power and control.

 

[ziaulislam]

The economic uncertainty and instabilty taking its toll, was bound to happen, reaching the tipping point.

Just some good news about elections about to be held in three months would bring in good sentiments and with it news about cases against PTI members quashed and 10,000 supporters and PTI members being released.

Some CBM's between the neutral duffers and PTI, some reconciliaton with IK, anything would do.

The country was taken for a ride and now devastated for the whims and fancy of a few Generals, their bloated egos and insatiable greed for power and control.

Not true exactly

Yes stability is important but let's nawaz sharif wins the election due to think that will bring stability

The problem is lack of structural reforms (just slap direct taxation) and stupid corrupt Deals

This is ethos of the nation it seems

Our motto is
Khata hey tu lagata be hey

People should honestly either go to attock jail and ask for forgiveness or just bear it


Wasim akram was asked would u like to do politics


He said jo aik acaha banday ko Jo hal keya hey tu Mera Kya huga

 

[Kingdom come]

Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty’​

Talqeen Zubairi Published August 31, 2023 Updated 3 minutes ag

0

This image shows activity on the Pakistan Stock Exchange on Thursday. — Photo courtesy PSX website
LISTEN TO ARTICLE1x1.2x1.5x
Stocks suffered losses for the fifth straight session on Thursday, bleeding more than 1,700 points on the back of rumours of a hike in interest rates, economic uncertainty, and the unrelenting depreciation of the rupee.
The bourse stayed flat for 10 minutes after the opening bell. However, at 9:40am, the market began its gradual slide with the KSE-100 eventually losing 659 points by 12:00pm, sinking to 45,584.62. After 2:50pm, the market plunged steeply — by 1,784.93 points — to reach a low of 44,459.62. When trading closed, it corrected itself to 45,002.41, down 1,242.14 points, or 2.69pc from the previous day’s 46,244.55.
The last time the market plunged so sharply (by over 1,500 points by day’s end) was after then-prime minister Shehbaz Sharif’s announcement of a 10pc “super tax“ on large-scale industries in June 2022.
Intermarket Securities’ Equity head Raza Jafri told Dawn.com that the KSE-100 continued to be under severe selling pressure owing to a lack of confidence emanating from a weak economy, particularly the depreciating rupee.
“While value buyers may return if the dip extends, meaningful valuation rerating needs clarity to return,” he added.
Arif Habib Corp analyst Ahsan Mehanti echoed Jafri’s viewpoint, saying stocks fell across the board on economic uncertainty amid a slump in the rupee and a likely hike in interest rates owing to high inflation.
“The caretaker finance minister’s assertion of a lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in [yesterday’s] bearish close,” he said.
The market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps, noted JS Global in its daily report.
KASB Securities chairman Ali Farid Khawaja told Dawn.com that investor sentiment “is very fragile”. “Any comment around political instability worries the market,” he said.
However, in Khawaja’s view, the bearish trend “will be short-lived” as he expects the market to recover. “We have seen similar volatility in the past as well.” He said reports of the Saudi crown prince’s visit to Pakistan “should be a strong catalyst for investor sentiment”.
Yousuf M. Farooq, director of research at Chase Securities, said market sentiment has changed over the last few days because of the anticipation of a rate hike.
“The market is expecting higher rates on changing expectations for inflation on the back of a continuously sliding rupee, higher oil and electricity prices and an anticipation of second-round impacts.”
He added that higher interest rates mean a higher cost of capital and cheaper stock prices.
“The market on the other hand is extremely cheap when compared to other crisis-ridden countries. The PSX is trading at three-four times earnings and earnings, dividends and buybacks have remained robust.”
Investor Jibran Sarfaraz told DawnNewsTV said a reduced inflow of dollars and the rumours circulating about an impending interest rate hike — by an expected 2 to 3pc — have resulted in the sell-off.
“You can see there is pressure on the market because of this, and the dollar [rate] is also increasing day by day which is creating problems for importers and investors are worried.”
He said until economic and political stability returns, “nothing can be done”.
Sarfaraz’s solution: controlling inflation and, by extension, the interest rate. “Whichever government comes to power should focus on stabilising the dollar [and inflation]. The more interest rates stay high, the more investors will hesitate.
“Unless the interest rate eases, investors won’t come because they’re getting 22-23 pc interest rates [by stowing their money in banks]. They will move where the higher profit margin is higher.”
Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Is it rising after the shock?