KARACHI: The stocks took heavy beating as the bears ran amok on Thursday dragging the KSE-100 index down by 506.68 points (1.33 per cent) to close at 37,516.12, which represented the lowest index level for 2019.

Investors were discouraged by a host of bad news. The Asian Development Bank report stated that the country would continue to face macroeconomic challenges despite tight fiscal and monetary policies to rein in twin deficits leading to deceleration of the GDP to 3.9pc this fiscal year.

A major brokerage house stated that the panic selling ensued “amidst rumours of resignation of a key government official and change of parliamentary form of government to presidential.”

The index hit the intraday low by 610 points, after an initial jumpstart by 20 points. Hardest knock came from the finance minister who cautioned that the rupee would further plummet against the dollar and new investment would come to a halt if Pakistan did not strike a deal with the International Monetary Fund.

The volume declined 17pc to 128 million shares, from 153.3m shares while traded value also dell by 9pc to $23.8m, as against $26.3m. Stocks that contributed significantly included Unity Foods (right share), Worldcall Telecom, K-Electric, Bank of Punjab and Maple Leaf Cement, which formed 56pc of total volume.

Sector-wise banks contributed 92 points to the index downside as heavyweights such as Habib and United Bank closed in the red. Other losers were exploration and production, down 72 points, power 66 points, cement 50 points, oil and gas marketing companies 35 points. Autos started out strong on the news of revocation of 10pc federal excise duty on 1700cc and above vehicles, but could not swim against the tide and conceded early gains.

Major laggards were Pakistan Petroleum, decreasing by 1.2pc, Oil and Gas Development Company 0.9pc, Habib Bank 1.1pc, Engro Corporation 1.1pc, Hub Power 3.6pc, United Bank 2.7pc, Bank Al Habib 1pc, Pakistan Oilfields 0.9pc and Lucky Cement 1.9pc, which cumulatively took away 223 points.

Published in Dawn, April 5th, 2019