KARACHI: Stocks saw widespread decline as the investors’ risk appetite diminished. The KSE-100 index plunged 282.03 points (0.82 per cent) and settled at 34,119.39 on Thursday.

Even if in tiny amounts, 223 stocks out of the 558 active shares saw price erosion. The index made a slight intraday high by 9 points, before it succumbed to selling pressure. Individual and institutional investors generally stayed on the sidelines and when they entered, it was mostly to sell.

Traders said that the PSX did not follow other markets and went its own way. “Nasdaq-100 had plummeted more than 30pc between Feb 19 and March 23, but the index recovered all of the losses and more with a gain of 43pc,” said a participant.

While cement, fertiliser, oil marketing companies and pharmaceuticals were already under the control of bears, the heavyweight exploration and production sector also gave up the lone fight to rescue the market as international oil prices took a dip. All three major stocks — Pakistan Oilfields, Pakistan Petroleum and Oil and Gas Development Company - closed in the red.

Banking stocks which were gaining value since the disclosure of the inflation at an average of 10pc till May, dispelling the impression of a monetary policy rate cut with the investors who thought it wiser to sit on cash and wait till the federal budget is announced in the upcoming week. Nervousness prevailed despite the assurance of the Finance Minister Abdul Hafeez Sheikh of no new taxes.

The volume increased 10pc from the previous day to 143.6 million shares while traded value declined 19pc to reach $33.9m. Engro Corporation, lower by 0.4pc, Hub Power 1.9pc, OGDC 2.1pc, Hub Power 1.9pc, MCB 1.8pc, Pakistan Petroleum 2pc, Lucky Cement 0.9pc, United Bank 2pc and Pakistan Oilfields 1.7pc were the major scrips that dragged down the index

Published in Dawn, June 5th, 2020