KARACHI: The stock market was in a tight bear hug on the first trading day of the week, where the KSE-100 index after an initial positivity turned south posting a heavy loss of 598.30 points (1.53 per cent) to close at the 17-month low of 38,481.70 points.

The longest ever lean period in the history of the Pakistan equity market has sent the KSE-100 index crashing down by 9,325 points (19.78pc) since January this year. The index has bled 27pc from its peak on May 25.

All of that is causing wide-spread panic in the market, particularly among ‘individuals’, who were the major sellers of stocks worth $4.30m on Monday. Political situation in the country and the confusion over the rupee/dollar parity soured investor sentiments.

A stockbroker expressed his utter contempt at the government’s haphazard decisions on major economic policies. Seeing lack of official concern over market malaise, one brokerage house wrote in its daily report: “It is with great sadness that we announce the passing of the KSE 100 index”.

Foreign investors stood on the sidelines while institutional investors took fresh positions in the oil sector. Elixir Securities was lone optimistic voice: “Given that today’s settlement figures do not show major selling by foreigners or domestic asset managers, we see support to kick in tomorrow near current levels”.

The volume slid 13pc over the previous session to 129m shares. The traded value slipped 19pc to Rs5.94bn. Top 10 scrips that eroded 311 points from the index included Lucky Cement down 3.9pc, PSO 5pc, Engro Corp 2.6pc, Dawood Hercules 3.6pc, MCB Bank 1.7pc, SNGPL 5pc, DG Khan Cement 3.6pc, The Searle 5pc, HBL 0.8pc and ISL 5pc.

Dollar hedged E&P stocks added 124 points.

Published in Dawn, December 12th, 2017