The Pakistan Stock Exchange (PSX) lost further steam on account of profit-taking and doubts regarding upcoming monetary policy as the benchmark KSE-100 Index closed 485 points lower on Friday.
Trading began sideways with KSE-100 hitting an intra-day high of 64,534.29 during the first half.
However, investors resorted to selling in the second part of trading, and at close, the index settled at 63,813.06, down by 484.94 points or 0.75%.
Selling was witnessed in automobile assemblers, cement, chemical, commercial banks, and fertiliser sectors.
However, index-heavy OGDC and PPL traded in the green over hope of the circular debt management plan.
At close on Thursday, OGDC and PPL stocks took a battering after rising in the early part of the session, with the benchmark KSE-100 Index losing over 500 points to settle at 64,298.00.
Experts said that the selling comes as investors remain divided over reports on the government’s circular debt plan. The energy sector stocks have remained the key driver of the stock exchange in recent days.
Moreover, there is also a bit of profit-taking as well, on account of final trading session of the week.
media, citing its sources, reported on Friday that the much-talked-about circular debt reduction plan (inter-company investment) and rationalisation of electricity tariff for industrial sector, both the brainchild of caretaker Minister for Power and Petroleum, Muhammad Ali, are reportedly not being supported by the Finance Ministry in their present form as both are not covered in the International Monetary Fund (IMF)-dictated federal budget.
Both the plans, i.e., adjustment of Rs1,250 billion of companies (with an estimated benefit of Rs 400 billion after adjustment in books of concerned companies) and reduction in electricity tariff to Cents 9 per cent from Cents 14 per unit, have been tailored by the those outside the Power and Petroleum Divisions to keep them a secret from the top bureaucrats.
Globally, Asian shares were set on Friday to snap a three-week losing streak, while investors awaited a key reading on US inflation later in the day to gauge the outlook for US rates.
MSCI’s broadest index of Asia-Pacific shares outside Japan held broadly steady and was on track for a weekly gain of 2%.