KARACHI: The four-day winning streak on the stock market snapped on Tuesday as the KSE-100 index plunged 844.20 points (1.94 per cent) to close at 42,712.43.

Investors were inclined to take profit after the spectacular rise of the index by 3,092 points since July 24. Individuals continued to accumulate shares with net purchases of equity worth $6.32 million while foreign outflows amounted to $2.82m.

Moreover, US Secretary of State Mike Pompeo warned Pakistan against the International Monetary Fund bailout (in case the country decides to enter the programme) to pay off Chinese debt, which further dented market sentiments.

On the economic side, the incoming government was seen to face sluggish exports, rising debt and deteriorating indicators. The day kicked off positive for a brief moment but bears soon took over and rampaged throughout the trading session.

The index dipped intraday low by 953 points. Initial declines were led by exploration and production and financials. Commercial banks and fertilisers contributed 318 points to the index drop.

However, Fauji Fertiliser and Fauji Fertiliser Bin Qasim closed at upper lock due to an offer received from Inner Mongolia Yili Industrial Group to acquire 51pc shares of the company’s subsidiary, Fauji Foods.

Cement sector traded sideways till afternoon but came under the hammer in the late hours where Cherat Cement, decreasing by 5pc, Pioneer Cement 5pc, Fauji Cement 4.3pc, DG Khan Cement 4.4pc and Lucky Cement 4.4pc lost value.

Major contribution to the KSE-100 index downside came from Habib Bank, down 4.25pc, United Bank 4.82pc, Lucky Cement 4.42pc, MCB Bank 3.13pc and Pakistan Petroleum 1.64px, taking away 376 points. On the flip side, Pakistan Tobacco, up 4.76pc, Fauji Fertiliser Bin Qasim 4.99pc and Colgate-Palmolive Pakistan 3.81pc added 51 points.

Published in Dawn, August 1st, 2018