PSX descends into bear market territory
KARACHI: Cement stocks led the decline in the KSE-100 index on Monday as the benchmark touched its 10-month low of 42,153.38 points.
It shed 925 points (2.15 per cent) as the announcement about a cut in cement prices in the north zone hurt overall market sentiments.
According to Bloomberg, the Pakistan Stock Exchange (PSX) entered the so-called bear market, which means its main index has dropped more than 20pc from its recent peak. This makes it one of the worst-performing primary indexes this year, it said.
The KSE-100 index is down 20.2pc from its record high of 52,876 points on May 24.
“Market traded sideways in early trade as investors waited with bated breath for flows from institutions to set the market direction... Institutional selling in other major sectors amid no aggressive bids also exacerbated the drop in the KSE-100 index,” Elixir Securities wrote in its evening stock report.
Data released by National Clearing Company of Pakistan Ltd showed foreign investors were net sellers of equities worth $441,990. Local individual investors and mutual funds were net sellers of $3.3 million and $5.1m, respectively. Companies, banks, brokers and insurance firms were net buyers.
The traded value declined 30.8pc to Rs7.8 billion from Friday while the volume decreased 18.6pc to 153.1m shares.
Analysts at Topline Securities said the market is in the grip of fear and uncertainty because of the political meltdown and the latest economic data, such as slipping foreign exchange reserves, burgeoning current account deficit and imminent currency risk.
Top five index point-decliners were Lucky Cement, which went down 5pc, Sui Northern Gas Pipelines 5pc, Pakistan State Oil 4.1pc, DG Khan Cement 5pc and Dawood Hercules 5pc.
Sector-wise, cements shed 198 points, fertilisers 130 points, oil marketing companies 130 points, banks 76 points and power 51 points. Energy and exploration added 21 points to the index.
Published in Dawn, August 22nd, 2017