KARACHI: The market came under intense selling pressure on Thursday dragging the KSE-100 index deep down in the red by 948.34 points (2.28 per cent) — the steepest fall witnessed during the current year — closed at 40,655.37.

It opened under cautious optimism with the index rising to intraday high by 193 points. However, the bickering between major national institutions over the short-order issued the other day on retired Pervez Musharraf’s high treason case came to a head with the release of the detailed judgement at midday which sent investors into panic selling.

Insurance companies, brokers, other organisations and non-banking financial companies all ran for cover. Mutual funds also jettisoned shares worth $2.64 million. On the other hand, foreigners lapped up stocks worth 1.57m and local companies and banks also bought at dips.

The index sank to intraday low by 1,189 points, before bouncing back a little. Besides the major issue that set the market in the pensive mood all through the day, the start of roll-over week in a few days along with situation at border cautioned investors to be prudent and book profits by liquidating positions.

The volume declined 6pc to 260.1m shares, from 276.3m while traded value also decreased by 7pc to $73.2m, from $78.5m. Stocks that contributed significantly included Unity Foods, Hascol (right issue), Fauji Foods, Engro Polymer and Chemicals and TRG Pakistan, which formed 28pc of total turnover.

Sectors contributing to the dismal performance included banks, decreasing by 212 points, exploration and production 172 points, fertiliser 94 points, power 68 points and cement 63 points.

Major scrips that erased most points were Oil and Gas Development Company, down 2.9pc, Habib Bank 2.6pc, Hub Power 2.7pc, Engro Corporation 1.9pc, Dawood Hercules 4.5pc, Fauji Fertiliser 1.6pc, Pakistan Oilfields 2.9pc, Pakistan State Oil 2.7pc, Pakistan Petroleum 2.7pc and United Bank 2.1pc. Gaining stocks were few, only 33 among 364 active issues. Some of them were Shifa International, up 5pc, Millat Tractors 0.4pc and Saif Power 0.1pc.

Published in Dawn, December 20th, 2019