KARACHI: Panic gripped the equity market on the opening day of the new week, as bad news continued to pile up, forcing investors to get rid of stocks even at rock-bottom prices.

The KSE-100 index plunged by 995.66 points (2.47 per cent), marking the third-biggest single day decline in 2018. In the last seven trading sessions, the benchmark has lost 2,709 points (6.5pc). The market closed at 39,288.48 points on Monday.

The growing uncertainty on the political front following the weekend developments which included the detention of Pakistan Stock Exchange Chairman Huss­ain Lawai and the possible return of the convicted Sharifs on 13th, created a scare in the minds of investors.

Foreigners continued to ditch stocks with an outflow of $1 million while selling by local asset managers amounted to $3.7m worth shares. Uncertainty over macros and lower than expected urea off-take added to investors’ woes. High net worth value-hunters did step in and resorted to take exposure in oversold stocks which prevented further deterioration in stock prices.

Banks came under panic sell-off on the back of news that the Supreme Court had ordered the names of heads of three banks to be placed on the exit control list due to their possible involvement in money-laundering. As a result, UBL dropped to its lower circuit while other major banks such as MCB, Habib Bank and Bank Alfalah also took severe beating.

Cement sector closed lower on the back of increase in international coal prices. DG Khan Cement, Lucky Cement, Maple Leaf Cement and Pioneer Cement were the major laggards of the sector. Pakistan Oilfields and Oil and Gas Development Company closed in the red as crude oil prices receded in the international market.

The biggest drags were commercial banks, fertiliser and cement which together wiped away 531 points from the index. Worst-performing shares were United Bank, down 4.8pc, Habib Bank 2.7pc and Engro Corporation 3.4pc.

Published in Dawn, July 10th, 2018