Stocks tumble 633 points on foreign selling

Updated 01 Oct 2020

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In this file photo, Pakistani stockbrokers watch the latest shear prices on a digital board during a trading session at the Karachi Stock Exchange (KSE). — AFP/File
In this file photo, Pakistani stockbrokers watch the latest shear prices on a digital board during a trading session at the Karachi Stock Exchange (KSE). — AFP/File

KARACHI: For the second session this week, the stock market witnessed a bear onslaught that spilled blood across the board. The KSE-100 index plunged by 632.88 points (1.54 per cent) and closed below the 41,000 yet again, at 40,571.48.

The trade remained volatile throughout the day and market lost value of Rs86 billion in a day as 304 of the 417 stocks finished in the negative against just 98 gainers.

The market took a positive start and stocks climbed to intraday high by 234 points as investors accumulated stocks hoping to see corporate anno­unce major profit upturn. That however was not to be as weak company earnings were unveiled by many entities.

Several other factors ad­ded to trigger sell-off inclu­ding the alert by Sindh health authorities to consider micro smart lockdown in selective spots in Karachi to contain the increased cases of coronavirus. It cast a bad spell on the investors’ enthusiasm.

Meltdown in the international market further spoilt investor confidence while the last straw was the political upheaval, leading to a worrying situation as the opposition and the government came close to head on collision after the former PM Nawaz Sharif’s long distance speech at the former’s joint conference.

All of that sent the investors running to quit stocks, which saw the index dip to intraday low by 709 points, mainly in the last hour of trading. Foreigners sold shares worth $2.15 million while mutual funds liquidated equity worth $4.55m to meet redemptions. Brokers also sold shares of $4.21m while companies, banks and insurance bought at dips.

The volume stood at 474m, up from 354m shares that changed hands the earlier day. Hascol, lower by 7pc, Unity Foods 4.7pc and K-Electric 0.5pc were the leaders cumulatively contributing 178m shares. Traded value rose to Rs15.4 billion, from Rs13.8bn.

Major contribution to the index downside mainly came from United Bank, Hub Pow­er, Engro Corporation, TRG and Oil and Gas Development Company, as they wiped off 193 points.

Published in Dawn, October 1st, 2020