Investors Lost More Than a Trillion Rupee at Pakistan Stock Exchange this Year

Karachi October 30 2022: Investors lost Rs 1,035.7 billion this year at Pakistan Stock Exchange (PSX) due to political instability being faced by the country and the same has been reflected in Rupee losing its value amid abnormally higher commodity prices and increase in interest rates to a 13 year high level.

Opposition parties in the National Assembly on 10^th April 2022 defeated the ruling PTI government in the no-confidence resolution they jointly moved against Prime Minister Imran Khan with 174 votes, setting a new precedent in parliamentary history of the country for in-house change through a democratic and constitutional manner. Since then, PTI Chairman is calling for new elections besides showing mistrust on institutions.

Meanwhile, State Bank of Pakistan increased the interest rates to 15 percent a high of 13 years with an aim for ensuring a soft landing of the economy amid an exceptionally challenging and uncertain global environment. Higher Interest rates would cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the Rupee in the wake of multi-year high inflation and record imports.

Besides, Political unrest Investors confidence shatters due to increased government liquidity and external vulnerability risks and higher debt sustainability risks, in the aftermath of devastating floods that hit the country since June 2022. The floods have exacerbated Pakistan’s liquidity and external credit weaknesses and vastly increase social spending needs, while government revenue is severely hit.

Pakistan Petroleum worth decreases the most by Rs 75.9 billion since start of this year followed by Rs 70.6 billion and Rs 69.6 billion decrease in worth of Oil and Gas Development Limited and Habib Bank Limited. Out of top ten losers five were banks as Moodyʼs Investors Service (Moodyʼs) downgraded the long-term deposit ratings to Caa1 from B3 of five Pakistani banks: Allied Bank Limited (ABL), Habib Bank Ltd. (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Ltd. (UBL).

Top Ten Losers at PSX since January 3rd 2022

Unilever Pakistan Foods Limited gained the most in the same period by Rs 44.6 billion followed by Rs 21.4 billion and Rs 18.8 billion increase in worth of Lotte Chemical Pakistan Ltd. and Millat Tractors Limited.

Top Ten Gainers at PSX since January 3rd 2022