KARACHI: Stocks tumbled in the second session on Friday when the panic-stricken investors fell over each other in their attempt to sell and flee the market. The KSE-100 index thus closed at 46,636 points representing a loss of 284 points, or 0.61 per cent.
It was a depressing ending to trading on a day when the market remained in green all through the first session with the index hitting an intraday high by 261 points. The massive bleeding in the second half not only wiped off all the gains but pushed the index to intraday low by 365 points. Overall, the market saw volatility by 628 points.
Most market dealers said that investors were petrified over the news of New Zealand cricket team calling off their tour of Pakistan and were making arrangements to leave the country citing security concerns. Others cited the uncertainty over SBP Monetary Policy statement to be read out on Monday.
Investors were also concerned over the economy as the current account deficit (CAD) for August widened to $1,476m compared with a surplus of $255m during Aug 2020. The primary reason for surging CAD was 86pc year-on-year jump in imports amid high global crude oil prices, uncertainty over rupee parity and foreign outflows.
For many knowledgeable people the tale of investor panic over the threat to New Zealand cricket was difficult to digest. The Pakistan market is pretty resilient and what better proof then the market behaviour on June 29, 2000 when the market came under terror attack. Yet the investors managed to remain calm and the index recorded gains of 242 points that day.
Selling pressure was witnessed in the technology sector where AVN was down 3.5pc, Telecard 3.1pc, NetSol 2.8pc, System Ltd 1.8pc and TRG 1.5pc.
The trading volume and value for the day stood at 387m shares and Rs.16.2bn respectively. WTL was volume leader with 42m shares.
Published in Dawn, September 18th, 2021
