Bearish trend continues at PSX as KSE-100 sheds 998 points
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Stocks took another hammering on Monday, with the benchmark KSE-100 index bleeding 998 points (2.49 per cent) by the day's end to close below the 40,000 level at 39,072.47.
Equities remained under pressure throughout the session and the market fell as low as 38,865.10. The index touched the day's high at 40,070.83 points.
Trading volume improved slightly to 408 million shares traded today as compared to 348m traded in the previous session, according to Ismail Iqbal Securities Ltd. The daily traded value for the 100 index increased to $58m from $57m in the previous session, according to Next Capital Ltd.
Commenting on the decline, Ali Asghar Poonawala, a senior financial analyst at AKD Securities, said sustained selling pressure spilled over from last week while "continued anti-corruption action regarding opposition leaders, negativity surrounding a positive second wave of Covid-19 cases and headline risks from the upcoming FATF meet confirmed risk-off sentiment at the bourse today".
The "cloud of risks" led to significant profit-taking as individuals, who have been driving buying activity during the year with $175m in net buying, sought to run for the exits, he said.
Additional negativity emerged in the form of declining global crude benchmarks (Brent crude falling 4pc intraday), he added.
Muhammad Faizan Munshy, Head of Foreign Sales at Next Capital Limited, attributed the plunge to increasing cases of the coronavirus and political instability.
E&Ps, banks and independent power producers (IPPs) dragged the index, cumulatively shedding 357 points.
The stock market had experienced bloodbath in three of the five sessions last week which wiped off 1,630 points (3.9pc) from the KSE-100 index.
After falling from two crucial levels of 42,000 and 41,000, the index managed to settle slightly over the 40,000 level at 40,071. The market was plagued by hostile news flow for the most part of the week, starting from corporates coming up with weak earnings reports and the rise in new coronavirus cases that frightened the provincial government into imposing micro smart lockdowns in hotspots of Karachi.
