KARACHI: Bloodbath was witnessed at the stock market on first trading day of the week as the KSE-100 index plunged 653.30 points (1.86 per cent) to close at 2-month low of 34,471.95.

The market took off to a positive start and crawled to intraday high by 69 points. But the upward momentum could not be sustained as the market went into panic selling with red splashed all across the board with the index hitting intraday low by 757 points.

Cement sector was the leading loser of 106 points as distributors protested and demanded the reversal of a budgetary measure particular to the industry. As a result, investors in the sector ditched stocks as the new budgetary measure requires the presentation of CNIC for purchase of cement which was believed to hit the despatches. Consequently, most cement stocks including Lucky, Maple Leaf, Kohat, DG. Khan, Cherat and Fauji hit their lower circuits.

Institutional investors stood on the sidelines on growing political noise and the flare up of emotional debates between the government and the opposition in the parliament on budget 2019-20. Investors’ sentiments also dampened as there was no sign of market support fund to which the finance minister had conceded more than a month ago.

Fears were exacerbated by the concerns over surging inflation, lack of market moving triggers. In the plethora of negatives, the $3bn investment from Qatar failed to calm the market.

Key pharma stocks like Ferozsons Laboratories, AGP Ltd, Searle Company and Abbott Pakistan closed at their lower locks as prices of 250 drugs have been reduced by around 15pc as per market reports. Exploration and production also dragged the index down despite the extended gains in oil prices in the international market.

Scrip-wise, Lucky Cement hit the lower lock; Engro fell 1.75pc; Engro Fertilise 3.78pc, Fauji Fertiliser 1.74pc, Fauji Cement 6.14pc, DG Khan Cement 4.99pc, Pakistan Petroleum 2.15pc, Oil and Gas Development Company 1.82pc, Pakistan Oilfields 2.93pc, Pakistan State Oil 2.93pc and Mari Petroleum 3.29pc.

Published in Dawn, June 25th, 2019