KARACHI: Share prices sank like a stone on Tuesday on escalating instability on both economic and political fronts.

More than Rs199.3 billion worth of investment value was wiped out in a single day. It was the biggest day-on-day decline as measured by the benchmark of 100 representative shares since June 24, 2022, according to Arif Habib Ltd.

It said uncertainty among investors plunged the KSE-100 index to an intraday low of 1,432.94 points. Reports about a further delay in the revival of the International Monetary Fund (IMF) programme, along with continuous political upheaval, made them lose their confidence, it said. Trade volumes remained healthy across the board as investors rushed to square up their investment positions.

Speaking to Dawn, Topline Securities CEO Mohammed Sohail said the top three measures necessary for a swift reversal in the downward market trend are the immediate signing of the staff-level agreement with the IMF, adjustment in the rupee’s value against the dollar that’s reflective of the ground realities and instant materialisation of dollar inflows from friendly countries to shore up the foreign exchange reserves.

Thanks to a prolonged bearish trend on the bourse, the total value of shares listed on the stock exchange has dropped to $23bn from $100bn in 2017 — roughly six years that Mr Sohail termed “the worst period” in the history of the stock market.

The KSE-100 index settled on Tuesday at 38,342.21 points, down 1,378.54 points or 3.47pc from the preceding session.

The overall trading volume increased 95.1pc to 205.9 million shares. The traded value went up 109.2pc to $29.35m on a day-on-day basis.

Stocks contributing significantly to the traded volume included K-Electric Ltd (29.9m shares), WorldCall Telecom Ltd (14.4m shares), Sui Northern Gas Pipelines Ltd (9.6m shares), Pakistan Petroleum Ltd (8.6m shares) and Cnergyico PK Ltd (8m shares).

Sectors contributing the most to the index performance were exploration and production (-240.4 points), technology and communication (-222.8 points), commercial banking (-199 points), cement (-164.9 points) and fertiliser (-138.1 points).

Companies registering the biggest increases in their share prices in absolute terms were Nestle Pakistan Ltd (Rs196), Pakistan Services Ltd (Rs104), the Thal Industries Corporation Ltd (Rs16.36), JS Global Capital Ltd (Rs9.98) and Noon Sugar Mills Ltd (Rs4.34).

Companies that recorded the biggest declines in their share prices in absolute terms were Bhanero Textile Mills Ltd (Rs76.80), Pakistan Tobacco Company Ltd (Rs69), Sanofi-Aventis Pakistan Ltd (Rs67.32), Mari Petroleum Company Ltd (Rs53.42) and Premium Textile Mills Ltd (Rs48.21).

Foreign investors were net buyers as they purchased shares worth $1.23m.

Published in Dawn, January 18th, 2023