Shares at PSX shed nearly 200 points on geopolitical tensions

Shares at Pakistan Stock Exchange (PSX) traded in the red on Monday, shedding nearly 200 points. The benchmark KSE-100 index plunged 730.69 points, or 0.9 per cent, to stand at 80,561.44 points from the previous close of 81,292.13 points at 1:23pm. The index closed at 81,114.20, down by 177.93 points, from the previous close. Awais Ashraf, director research at AKD Securities, noted that the “selling pressure in two major stocks, Hub Power and Mari Petroleum, is weighing down the index”. “Hub Power’s decline is attributed to the threat of revision of power plant contracts, while Mari Petroleum is under pressure following the distribution of bonus shares to investors,” he said. “Despite this, we anticipate that the approval of the IMF Extended Fund Facility will have a positive impact on the economy, as it ensures that the external account remains fully funded,” he added on a positive note. He observed the such a development could lead to further monetary easing and subsiding inflationary pressure, adding that investor interest was likely to “remain focused on stocks with higher dividend yields and those poised to benefit from monetary easing”.