KARACHI: Bears went on a rampage at the local stock market on Friday which saw the KSE-100 index plunge by 501.66 points (1.29 per cent) and close at 38,306.95.

Panic gripped investors in the absence of positive triggers; the continuing ambiguity over the International Monetary Fund package; worries over the outcome of Financial Action Task Force’s assessment’ and the recent heavy selling by foreign investors. The end of results season and the weekend ahead also pushed investors to profit booking.

The day recorded foreign buying of $2.08 million. The volume increased by 51pc to 129m shares while the value traded rose 37pc to Rs4.61 billion. Bulk of the contribution to total market turnover came from Bank of Punjab, K-Electric and Unity Foods.

Cement and banking sector mainly came under the hammer as heavyweights dragged the index down by 178 points. National, Pakistan and Attock Refinery ended deep in the red on back of reports that International Maritime Organisation (IMO) would enforce new emissions standards requiring ships to use fuel oil with a sulphur content of less than 0.5 per cent, down from the current 3.5pc.

Analyst Ahsan Mehanti observed that activity continued to be dull as investors weighed dismal data on foreign investment and speculated over further fall of the rupee against the dollar. Fitch Solutions expectations on economic slowdown to 4.1pc of GDP in FY19 and reports of cancellation of $3.2 billion UAE oil facility agreement also spoilt the mood.

Scrip-wise, major downside came from Pakistan Oilfields, down 2.82pc, Pakistan Petroleum 1.33pc, Pakistan State Oil 2.12pc, Oil and Gas Development Company 0.51pc, Lucky Cement 4.19pc, DG Khan Cement 4.75pc, Maple Leaf Cement 4.67pc, Engro Corporation 0.45pc, Habib Bank 1.57pc, MCB 1.74pc, United Bank 1.10pc, National Bank 2.88pc and Bank of Punjab 3.48pc.

On the flip side, Philip Morris Pakistan went up 4.65pc to emerge as the principal gainer.

Published in Dawn, March 16th, 2019