It was a day of rumours and unconfirmed reports at the Pakistan Stock Exchange (PSX) with index-heavy OGDC and PPL taking a battering after rising in the early part of the session, with the benchmark KSE-100 Index losing over 500 points on Thursday.
At close, the benchmark index settled at 64,298.00, a fall of 524.43 points or 0.81%.
Earlier, the KSE-100 hit an intra-day high of 65,213.61 with reports around the circular debt management plan that has been on the minds of investors for weeks.
The selling pressure in OGDC and PPL was also accompanied by profit-taking in other sectors after the KSE-100 showed growth over the last few sessions.
At close on Wednesday, positive momentum had prevailed at the bourse as its benchmark KSE-100 index closed at 64,822.43, up by 368.21 points or 0.57%.
Meanwhile, Caretaker Prime Minister Anwaar-ul-Haq Kakar has directed the Ministry of Energy to prepare and submit a comprehensive and sustainable plan after consultation with the Finance Ministry to reduce the circular debt of power and gas sectors.
The caretaker prime minister directed this during a review meeting he presided over on the action plan to reduce the circular debt in the energy sector.
Additionally, hopes of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting on Monday were renewed after the cut-off yield on short-term government securities surprisingly declined up to 62 basis points in the auction held on Wednesday.
Despite the decline, analysts media reached out to on Thursday said they expect status quo in the MPC meeting.
“Apart from profit-taking, reports suggesting that the government’s ‘circular debt’ plan would require the International Monetary Fund (IMF) nod have irked investors as they feel that the plan would face further delays,” Sana Tawfik told media.
“This has created negative sentiment among the energy sector stocks.
“Moreover, there are also rumours regarding a policy rate cut in the upcoming Monetary Policy Committee (MPC) on Monday,” she added.