KARACHI: Shares got hammered on Monday as KSE-100 index tanked by 639.71 points (1.79pc), its biggest single-day fall in 17 weeks, to close at 35,175.49.

Volume stood at 571m shares of trading value of Rs12.7bn. Yet, like last Friday, all of the business transpired in low-priced scrips. The four volume leading stocks, all quoted below the par value of Rs10, together saw trading in 149m shares, or a quarter of the entire day’s turnover.

The top traded share was Silkbank (right share) that saw volume of 67m and closed at just 34 paisa.

Institutions remained on the sidelines and individuals dabbled in third-tier stocks. “The activity in worthless stocks is gaining momentum, to the surprise of market participants,” said a dealer.

Topline Securities CEO Mohammad Sohail said the decline in local markets was in line with fall in global markets. The market also remained under pressure due to futures roll-over week.

Foreign investors did the cherry-picking of $1m stocks. Analysts pointed out Pak Elektron, Engro and DG Khan Cement fell by 2.2pc to 3.7pc. “Small- and mid-cap sto­cks like Ghani Auto­mobile, NetSol Techn­ologies, Cresc­ent Star Insu­rance, Merit Packaging, Byco Petroleum and Dewan Cem­ent ... closed at their lower limits,” said dealers at Topline Secur­ities.

Analyst Arhum Ghous said, “Another reason for the bearish momentum was pressure from international markets as Shanghai index tumbled 8.5pc, its worst decline since June 2007.”

Cements and fertilisers witnessed a bloodbath due to SBP’s decision to keep policy rate unchanged at 6.5pc. LPCL, MLCF, FCCL and FFBL closed down by 5.0pc, 4.8pc, 2.2pc and 4.9pc.

Other market observers said that as the crude prices tumbled to $47 a barrel, the oil sector continued to be weak with OGDC, PPL and POL down by 2.2pc, 1.6pc and 1.1pc, respectively.

Published in Dawn, July 28th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

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

Opinion

Editorial

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...