KARACHI: After a strong start following an overnight record closing, the stock market tumbled on Wednesday as equity investors became unsettled by the election of Donald Trump as the 47th president of the United States, pushing the KSE 100 index into the red.

Talking to Dawn, Tahir Abbas of Arif Habib Ltd said a section of investors indulged in profit-taking after Trump’s win, fearing a change of policies towards Pakistan with a change of leadership at the White House.

However, he added that side-by-side buying at dips supported the index in trimming its losses.

The benchmark KSE-100 index hit an intraday high of 92,966.95, a gain of 662.62 points, and a low of 91,891.47, down 412.85 poi­nts. However, it settled at 92,021.44 after losing 282.88 points or 0.31pc day-on-day.

Mr Abbas ruled out any immediate change in US economic policy after the new president takes the oath of office in January.

Presently, Pakistan enj­oys a nearly $3.5bn annual trade surplus as exports to the US totalled $5.4bn against imports of $1.9bn.

“Obviously, the new US government would have different policies, but in a broad picture, Pakistan would not be a priority, although the new president may have country-specific views on trade and economic partnerships,” he observed.

“In the short run, all eyes are on global commodities prices after the US pres­i­dential election resu­lts. Any major fall will benefit Pakis­tan,” observed Topl­ine Securities Ltd Chief Exec­utive Mohammed Sohail.

However, Ahsan Mehanti of Arif Habib Corporation said stocks closed sharply lower amid consolidation post-earnings season.

He added the rupee instability, weak global crude prices, and uncertainty over the outcome of the IMF’s first review on the Extended Fund Facility amid tax collection shortfalls and pending China energy debt also contributed to a downtrend at the PSX.

The index was weighed down by negative contributions from Systems Ltd, United Bank Ltd, Bank Al-Habib Ltd, Pakistan Petroleum Ltd, and Oil and Gas Development Company, which collectively subtracted 339 points.

On the other hand, Lucky Cement, Sazgar Engineering Works Ltd, and Kohat Cement helped offset some of these losses, adding 94 points.

The trading volume rose 18.13pc to 889.16m shares while its value fell 7.16pc to Rs30.47 day-on-day.

Mutual funds picked shares worth $2.47m while foreigners remained net sellers as they sold shares worth $0.02m.

Published in Dawn, November 7th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...