Equities drop for second day to below 49,000 mark
KARACHI: Stocks fell for the second consecutive day on Monday as the benchmark KSE-100 index was down 321.96 points (0.65 per cent) to close once again below the 49,000 level.
Market participants attributed the downturn to “correction” and ‘profit-taking”. Several traders and analysts, however, perceived it a dampener on investor confidence after the SECP directive to the local mutual funds, requiring them to maintain at least 5pc of the net assets in cash. “Many see it as a step that may slow down the buying momentum of the local mutual funds industry.”
The market began on a firm note, carrying the KSE-100 index up by 185 points, but the selling pressure soon took hold, which witnessed the index plunge by over 400 points within the first hour. Buying at dips lifted the index from its intra-day lows.