Equities post biggest single-day fall in 17 weeks
KARACHI: Shares got hammered on Monday as KSE-100 index tanked by 639.71 points (1.79pc), its biggest single-day fall in 17 weeks, to close at 35,175.49.
Volume stood at 571m shares of trading value of Rs12.7bn. Yet, like last Friday, all of the business transpired in low-priced scrips. The four volume leading stocks, all quoted below the par value of Rs10, together saw trading in 149m shares, or a quarter of the entire day’s turnover.
The top traded share was Silkbank (right share) that saw volume of 67m and closed at just 34 paisa.
Institutions remained on the sidelines and individuals dabbled in third-tier stocks. “The activity in worthless stocks is gaining momentum, to the surprise of market participants,” said a dealer.
Topline Securities CEO Mohammad Sohail said the decline in local markets was in line with fall in global markets. The market also remained under pressure due to futures roll-over week.
Foreign investors did the cherry-picking of $1m stocks. Analysts pointed out Pak Elektron, Engro and DG Khan Cement fell by 2.2pc to 3.7pc. “Small- and mid-cap stocks like Ghani Automobile, NetSol Technologies, Crescent Star Insurance, Merit Packaging, Byco Petroleum and Dewan Cement ... closed at their lower limits,” said dealers at Topline Securities.
Analyst Arhum Ghous said, “Another reason for the bearish momentum was pressure from international markets as Shanghai index tumbled 8.5pc, its worst decline since June 2007.”
Cements and fertilisers witnessed a bloodbath due to SBP’s decision to keep policy rate unchanged at 6.5pc. LPCL, MLCF, FCCL and FFBL closed down by 5.0pc, 4.8pc, 2.2pc and 4.9pc.
Other market observers said that as the crude prices tumbled to $47 a barrel, the oil sector continued to be weak with OGDC, PPL and POL down by 2.2pc, 1.6pc and 1.1pc, respectively.
Published in Dawn, July 28th, 2015
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