KARACHI: Despite the Pakistan stock market suffering the heaviest-ever single day decline on Monday, there was no sign of a bounce-back as the massacre extended to Tuesday when the KSE-100 sank further by 1,067.98 points (3.17 per cent) and closed at 32,617, the level last seen on Sept 4, 2019.

The index opened in the negative by 319 points with a million shares traded just at the opening bell. Witnessing the Wall Street crash overnight and the fear sweeping the country on multiplying cases of coronavirus strain, investors had already braced themselves for another sharp decline.

Although the major event of the SBP monetary policy statement for two months to be unveiled in the evening was visualised to post a cut in interest rates by 50-100 basis points was a bait, together with the rebound in international crude prices, investors were spooked and only waited for the stock they held to enter green zone and offload at minimum losses.

Figures released by the National Clearing Company of Pakistan in the evening revealed that local corporates had ditched shares worth a major $10.26m. Foreign selling also increased to $5.60m. Individuals, who were thought to be high net worth, turned major buyers and cherry-picked stocks worth $9.28m, deciding to hold them for the long term.

Among shares, banks and exploration and production traded at and near lower circuit breakers. Selected cement stocks traded positive in the early session as the SBP policy rate cut was considered to be a major positive for the leveraged players. But they too succumbed to selling pressure from midday when the trading screen turned red all over.

Sectors contributing to the performance included banks, plunging by 531 points, E&P 147 points, cement 85 points, oil and gas marketing companies 65 points, textile 63 points while fertiliser was up 23 points.

The index was dragged down by erosions in the value of Habib Bank 7.50pc, United Bank 7.50pc, MCB 6.66pc, Lucky Cement 6.08pc, Pakistan Petroleum 4.90pc, Bank Al Habib 5.67pc, Meezan Bank 7.44pc, Bank Alfalah 7.44pc and Oil and Gas Deve­lop­ment Company 3pc.

Published in Dawn, March 18th, 2020