KARACHI: Equities tumbled for the third straight session on Thursday with the KSE-100 index dropping by 295.81 points (0.77 per cent) and close at 38,011.63.
The market started off in a sombre mood with the index hitting intraday low by 540 points as economic and political concerns drove away investors from the market.
The traded volume dipped 43pc to over a six-month lowest turnover at 83.7m shares. Traded value also declined 42pc to Rs3.99 billion.
In anticipation of FTSE rebalancing next week, foreign funds started to balance their portfolios now as against the month-end activity where they need to keep cash positions handy. But major selling for the last two days emanates from mutual funds, where investors appear to be shifting cash to money market from equity funds in high interest rate environment.
The local investors’ disinclination to trade and stay on the sidelines was fanned by continuing economic uncertainty, political developments and the parleys with the International Monetary Fund.
Traders were worried over the continuing gloomy outlook on the economy with the shortage of natural gas giving a blow to industrial production.
Sui Southern Gas Company and Sui Northern Gas Pipelines hit their lower circuits after prime minister sacked their board of directors of both companies. The sentiments were spoilt further by Moody’s report that estimated GDP to slow down to 4.3pc to 4.7pc in FY19 and FY20, respectively.
Exploration and production, power, oil and gas marketing companies, energy and fertiliser sectors were major laggards where Pakistan Petroleum, down 2.2pc, Pakistan Oilfields 2pc, Oil and Gas Development Company 0.6pc, Engro Fertiliser 1.2pc, Dawood Hercules 0.9pc and Fauji Fertiliser Bin Qasim 4pc cumulatively scrapped 111 points.
On the other hand, Habib Metro rose 21 points, Engro Corporation 15 points, Abbott Pakistan 11 points, National Bank 11 points and Kohinoor Textile Mills 10 points.
Published in Dawn, December 14th, 2018
