- Geo-Political Tensions, withdrawal of Bi-Lateral Trade with India led to anxiety
- Investors remained sideline as Volume remains thin
KSE-100 Index lost 793 points amid rising tensions on Geo-Political front as Investors remained sidelined with Index Heavy Weight stocks fall with thin volume.
The market opened on a balanced note, however, sentiments turned negative as Investors evaluate the impact of a downgrade of Diplomatic Ties with India in response to India’s move to end special status for Jammu and Kashmir. As per news flow, Bi-Lateral Trade with India. which amounts to $2.5bn in FY19, will be withheld.
This is expected to impact the profitability of many listed companies, including Pharma and Auto Sector which imports Raw Material from India.
Activity at the bouse remained subdued, as the total volume of the Index till Mid-day stands at 39mn shares.
KSE-100 at Mid-Day, Source:PSX.COM.PK
The Benchmark Index KSE-100 has broken the psychological support level of 30,00 and the trades at the lowest level of the last four years. The KSE-100 is also trading below 100-SMA on the monthly chart. The technical charts reflect that the KSE-100 could find support near 29,700. A break below this level could drag the index towards 29,350.