Inside Financial Markets

KSE losses 120 point investor’s feared on regional market pressure after FED.

karachi-stocksKSE losses 120 point investor’s feared on regional market pressure after FED.

Pakistan’s stocks closed lower, with across the board selling pressure and profit-taking in some large-cap stocks, dealers said. The Karachi Stock Exchange’s benchmark 100-share index closed 0.55 percent lower at 22,015.04. The market dipped into negativity after treading in positive territory for most of the day as the sell off in regional markets spooked investors. With growing realization that Pakistan is entering a new IMF program and no confirmation of Saudi deferred oil payment program, investor’s feared stricter conditions and an uptick in interest rates on the cards. Index heavy weights OGDC -.89 and MCB -1.69% led the decliners as persistent selling by one of the largest FI funds weighed in on price and sentiment. Pakistan State Oil -2.2% also lost intraday gains as the solution of the circular debt still remains hypothetical. The cement sector also weakened as rising interest rates will push up borrowing cost for one of the most leveraged sectors in the market.

Liquidity will trump fundamentals in the short term and continuous foreign selling will turn local sentiment sour. The FED it seems has unleashed the bears. Said ovais Ahsan Head of International Sales Js Global and president Society of Technical Analysts Pakistan (STAP)


Ali Nawaz

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)