Pakistan’s benchmark index, KSE-100, shed 334.45 points during early intraday trading on Monday.
The index was down 0.18 per cent from its previous close of 184,174.48 points at 11:20am, to 183,840.03 points.
This drop comes on the heels of a particularly turbulent week for Pakistan’s equities market. Last week, the index lost over 6,000 points on Thursday after the State Bank kept interest rates unchanged.
The index rebounded slightly to close in the green on Friday.
Shoaib Memon, executive vice president of equities at AKD Securities, said the reaction of the central bank’s decision to maintain the key policy rate at 10.5pc should have a “short-term” negative reaction, and that even within US-Iran geopolitical tensions, “positive sentiment” will prevail.
Top decliners were led by Bank Makramah Limited, falling 10pc to Rs83.06, followed by Grays Leasing Limited, which fell 9.47pc to Rs20.37, and Ashfaq Textile Mills Limited, which fell 9.28pc to Rs19.85.
According to a technical analysis by brokerage firm Arif Habib Limited, last week’s setup sets a “renewed attempt to break above the recently established resistance zone of 184,570-185,625 points”.
The firm also notes that a breakout “above this band would open the door for a test of the next major resistance area at 186,125-186,700 points”. Additionally, “immediate support is seen between 183,700 and 182,200” and “a clear breach below this range would reinforce bearish pressure and could lead to further declines”.
