Stocks tumble 680 points on foreign selling
KARACHI: The initial gain of 66 points in early morning trade on Wednesday soon fizzled out with investors jostling to sell-off equity all day, leaving the entire trading board splashed with red.
The panic selling intensified in the last hour which pulled down the KSE-100 index to a loss of 680 points (1.56 per cent) and close at 43,002.83.
While there was nothing to show off a positive response to the amnesty scheme on which much of the market and government had pinned their hopes, uncertainty over macroeconomics and lack of near-term positive triggers took their toll on the investor sentiments.
The worries were exacerbated by the pressure on international oil prices and upcoming FATF decision on Pakistan. Market talk suggesting Moody’s downgrade of Pakistan’s rating and rumours of heavy foreign selling proved the last straw on camels back, prompting locals to jump into panic selling even at losses. Foreign investors have off-loaded stocks worth $94m since the start of the of the year in line with their exodus from most emerging markets.