KARACHI: Bears prow­led the stock market knocking down shares that sent the KSE-100 index reeling down by 364.50 points (0.95 per cent) and close at 37,853.57.

The equities opened gap up and rose to intraday high by 242 points. But the market lost momentum as the index succumbed to selling pressure with the last hour witnessing panic selling across the board.

Elixir Securities Director Research Hamad Aslam commented that in the quarter Sept-Dec (with two sessions remaining), the index is down 17pc in dollar terms, representing its worst performance since the 2008 crisis; in rupee terms it would be the third worst performing quarter in 10 years.

The PSX on Thursday moved in sharp contrast to the international markets which recovered on the back of increase in crude oil prices. Things have started to heat up on the political front as the government placed ex-president Asif Ali Zardari on exit control list due to ongoing graft cases against him.

Investors await the next round of negotiations with the International Monetary Fund in January, but the terms and conditions for an aid package appears hard to meet. The bailout package requires measures to meet revenue shortfall; electricity hike and further rupee devaluation

Major contribution to the index downside came from Lucky Cement, down 3.49pc, Habib Bank 2.19pc, Bank Al Habib 3.72pc, Engro Corporation 2.06pc and United Bank 2.23pc, taking away 203 points.

The index closed below 38,000 for the first time since October 24 with conditions believed to remain volatile due to rollover week and uncertainty over the political and economic issues.

Published in Dawn, December 28th, 2018