KARACHI: A staggering sum of Rs169 billion was wiped off the market capitalisation at the Pakistan Stock Exchange in a single day where 325 listed stocks bled profusely against just 28 scrips that managed to escape the carnage.

The KSE-100 index fell 1,027 points (2.43 per cent) and sank way below the 42,000-level at 41,296 on Monday.

The market opened on a chilling note as fears of escalation of hostilities between the US and Iran took hold of the investors’ sentiments. The sabre-rattling by the two hostile nations following the killing of latter’s military commander Qasem Soleimani in an American drone attack in Baghdad last Friday kept the world in state of panic.

Investors’ appetite for riskier assets vanished as they ran to seek the cover of safe haven, mainly gold. The yellow metal made the highest single day rise of Rs2,600 per tola. International oil prices took a big jump which raised concerns over the impact on import bill for the country.

Although heavyweight exploration and production struggled to remain in slight green, they too succumbed to selling pressure as there was nothing to calm the market. Banks, fertiliser, cements, steel and pharmaceutical stocks took the crowing blows.

Mutual Funds were quick to unload stocks worth $5.68 million, which a fund manager said represented large redemptions and the sell-off to shelter their capital-protected funds. Incidentally, foreigners followed the adage: “It’s time to buy when there is blood on street,” and went into value buying of blue chips worth $2.02m at low levels.

Scores of stocks on almost all sectors closed at their lower circuits. In cement, DG Khan, Pioneer, Maple Leaf and Cherat ended at their lower locks for the day while Lucky lost 4pc. In steel, Aisha and International hit their low.

Among pharmaceutical, Searle and Ferozsons lost their maximum value for the day. Other major losers were Engro, down 3.9pc, Hubco 3.1pc, Pakistan Petroleum, MCB 1.8pc, Bank Al Habib 2.6pc and GlaxoSmithKline 3.8pc.

Published in Dawn, January 7th, 2020