KARACHI: A stampede of panic-selling for the fourth successive day saw the KSE-100 index tank 659.15 points (1.58 per cent) on Monday to close at 40,978.23.
Market capitalisation amounting to Rs 107 billion was wiped off. Over the last five days, the Pakistani bourse has witnessed bear rampage that has clobbered the index by a massive 2,702 points (6.28pc).
The index treaded in the positive zone for the first ninety minutes, making intraday high by 206 points. But it soon nose-dived and hit intraday low by 734 points. The market was thought to have succumbed to aggressive selling by some local fund managers together with foreign outflows.
The figures released by the National Clearing Company of Pakistan in the evening confirmed mutual funds as the major sellers of equity worth $8.1 million. However, foreign investors provided some relief with a turn to net buy of Pakistani shares valued at $1.9m.
While the last week’s Moody’s credit rating downgrade of the country’s outlook to ‘Negative’ from ‘Stable’ was still on their minds, the investor sentiments were further dented by news related to the proposed increase in gas prices by 30pc from Jul 1.
Other negatives included the upcoming decision of Pakistan’s inclusion in grey/black list by Financial Action Task Force, depleting foreign exchange reserves and the final verdict over Panama scandal.
Sector-wise, cements, energy and fertilisers took the major blow while banks closed mixed where Habib Bank, United Bank and MCB Bank gained values but Bank Al Habib, Bank Alfalah and National Bank closed in the red.
Heavyweight stocks that pulled the market down included Pakistan Petroleum, down 2.16pc, Oil and Gas Development Company 1.36pc, Engro Corporation Pakistan 1.30pc, Pakistan Oilfields 1.19pc, Fauji Fertiliser 3.21pc, Hub Power 2.26pc and Lucky Cement 4.77pc, cumulatively eroding 253 points from the index.
Published in Dawn, June 26th, 2018
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