PSX bleeds 1,162 points as global markets slump
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KARACHI: Pakistani stock market was rattled on Friday as it joined the rout in global equities. Economists fret over sharper than expected downturn in world economies as the novel coronavirus outbreak goes on to invade more than 40 countries.
The KSE-100 index tumbled 1,162.44 points (2.95 per cent) and settled again below the 39,000-level at 38,219.67, wiping out Rs186 billion from paper value of corporate Pakistan.
Investors continue to dump stocks and plough their money in safe haven assets, mainly gold. Foreigners in Pakistan capital market continued to sell off scrips valued at $2.29 million, taking the one-month outflow to a staggering $60m.
Although local individuals strived to support the market by taking fresh positions worth $6.83m, nervous investors’ sentiments were further dampened by the decline of $175m foreign inflows in treasury bills in the last auction amid falling yields.
Regardless of the red spread all across the board, the cement sector continued the rally with several stocks hitting their upper circuits in the first 15 minutes trading. However, investors turned to profit-taking as the growing selling pressure in the market refused to subside.
Stocks in the energy sector dropped as global oil prices slid to the lowest level since June, 2017. The international oil cartel, Organisation of Petroleum Exporting Countries, was reported to be mulling supply cut to world markets by 1.5m barrels a day which was subject to the consent of main ally Russia.
In the local market, the two heavyweight oil and gas exploration scrips – Oil and Gas Development Company and Pakistan Petroleum – were seen closing near their lower circuit breakers.
Fertiliser also dipped into losses on the back of price cut in urea by Fauji. Banking too closed down 3.67pc as investors factored in a possible cut in policy rate in upcoming monetary policy statement.
The volume declined 28pc over the previous day to 244m shares while traded value also dropped 15pc to reach $73m. Stocks that contributed significantly included Fauji Cement, Maple Leaf, Pioneer, DG Khan and Unity Foods, which formed 42pc of total turnover.
Sectors contributing to the market meltdown were banks, decreasing by 362 points, exploration and production 243 points, fertiliser 155 points, power 118 points, oil and gas marketing companies 78 points.
Among scrips, major falls were witnessed in OGDC, down 6.54pc, PPL 6.05pc, Pakistan Oilfields 4.92pc, Pakistan State Oil 5.06pc, Habib Bank 3.33pc, United 4.51pc, MCB 3.98pc, Engro Corporation 4.30pc, Dawood Hercules 2.23pc, Lucky Cement 1.30pc, Engro Fertiliser 2.34pc and Kohat Cement 6.92pc.
Published in Dawn, March 7th, 2020
