Market Daily: Steepest fall after 20 sessions; market sheds 700 points

LAHORE: Indices at Pakistan Stock Exchange (PSX) posted the steepest fall on Tuesday since May 14, 2018, as Monday’s 4 per cent rupee devaluation against US dollar failed to entice investors. Further, Pakistan’s imports continue to rise as last two devaluations have yet to make any noticeable impact on the overall import bill, thereby raising the question, ‘is devaluation really the solution?’.

Investors also fear that the recent devaluation and the call to further devalue will likely push up the interest rates and will eventually rein in on aggregate demand.

Investors’ sentiment remained bleak across the board, while disappointment was more striking in banks and cements. Total traded volumes and values were down 14 per cent and 23 per cent, respectively.

Amongst major sectors, cement, bank, oil and gas marketing, fertilizer, automobile and E&P sector withheld 519 points from the index.

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Meanwhile, as per the notice sent to PSX by WorldCall Telecom (WTL), the company is intimated by TFC trustee that it has received requisite approvals from TFC holders to effect the 3rd restructuring of TFC-III.

According to the State Bank of Pakistan (SBP), Pakistanis received remittances amounting to $18.028 billion in 11MFY18, +3 per cent YoY. Month-on-month basis, during May 2018, the inflow of workers’ remittances amounted to $1.77 billion, which is 7.30 per cent higher than April 2018 and 5 per cent lower than May 2017.

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