The KSE-100 index of the Pakistan Stock Exchange (PSX) continued with bearish trend on Tuesday, losing 366.86 more points, a negative change of 0.45 per cent, closing at 81,483.64 points against 81,850.50 points on the last working day.
A total of 369,620,812 shares were traded during the day as compared to 400,309,071 shares the previous trading day, whereas the price of shares stood at Rs 17.062 billion against Rs.18.690 billion on the last trading day.
As many as 427 companies transacted their shares in the stock market, 127 of them recorded gains and 246 sustained losses, whereas the share price of 54 companies remained unchanged.
The EFG Hermes Pakistan CEO, Raza Jafri, attributed the market’s downturn to disappointing results from state-owned oil exploration companies. He also noted that independent power producers (IPPs) were under pressure due to reports of the government planning to revise their contracts.
Earlier this month, the government announced efforts to renegotiate contracts with IPPs to address “unsustainable” electricity tariffs. Power Minister Awais Leghari indicated that while good news regarding the negotiations would be forthcoming, significant relief in electricity prices would not be immediate.
Analysts also linked the market’s decline to uncertainties surrounding the government’s stance on IPP capacity payments and ongoing political instability following a Supreme Court verdict supporting the PTI’s bid for reserved seats. Investors are advised to consider high-dividend stocks and companies poised to benefit from structural reforms.
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