KARACHI: Massive sell-off was witnessed at the stock market on Thursday where the KSE-100 index tanked 510 points, or 1.08 per cent, to settle below the 47,000 psychological barrier at 46,903.

The market was rocked as investors panicked over the continuing decline in the rupee; rising cost of commodities, higher Covid cases and run on redemptions at a few major mutual funds.

Mutual funds were the biggest net sellers as they offloaded shares worth $5.55m. Foreign investors also walked out of the equities valued at $1.72m. Individuals picked up the pieces with net purchases of $5.44m, but that was not good enough to put a floor under the market fall.

On the news front, the Consumer Price Index witnessed an increase of 8.4pc on a year-on-year basis in August and trade deficit which clocked in at all-time high $4.05bn for the outgoing month provided further reason for the investors to seek the safety of fixed return instruments.

Long-term value investors, nonetheless, were inclined to wait for clarity on MSCI reclassification proposal, scheduled to be announced on Sept 7.

The index made intraday high and low of 76 points and 539 points. Among sectors cement saw significant selling pressure due to massive surge in coal prices in the world markets. Banks and technology stocks also dropped due to cost pressures and limited flexibility to pass on the costs.

Bullish sentiments were seen in the refinery sector on back of the news that Ministry of Energy (Petroleum Division) had finalised the modified draft Refinery Policy 2021. The entire sector turned green with gains in Attock Refinery, National Refinery, Byco Petroleum and Pakistan Refinery.

Stocks that were major laggards on Thursday included UBL (41 points), HBL (40 points), Lucky Cement (36 points), MCB Bank (30 points) and CHCC (25 points). The traded volume inched up to 544.4m and the value increased by 12pc to reach $96.2m.

Among scrips, GGL topped the turnover list with change of hands in 58m shares.

Published in Dawn, September 3rd, 2021