KARACHI: The eight-session rally at the stock market came to an end as the KSE-100 index plunged 510.12 points (1.21 per cent) and settled at 41,493.97.

The overdue correction was triggered by the investors’ disappointment over the Chinese suggestion of “more talks” before conceding a financial assistance package, which last week the market was anticipating to materialise immediately in the sum of $6-9 billion.

Market opened negative and sank 500 points within the first 15 minutes of trading. The Index hit intraday low by 913 points, before individuals took the courage to step in and buy shares trading at cheaper multiples.

The selling was led by mutual funds which disposed of stocks worth $5.79m and booked profit as they were the first to mop up stocks at the KSE-100-lowest of 36,661 points on Oct 16.

In the 10 subsequent sessions in which the index had gained 4,986 points following the bailout package of $6bn by Saudi Arabia, mutual funds stood out as the lead buyers of stocks worth $26m at lower levels. Other institutions stood on the sidelines on Monday.

The volume declined 27pc over the last session to 214 million shares while traded value fell 31pc to Rs9.54bn. Stocks that contributed significantly included TRG Pakistan, Engro Polymer and Chemicals, Bank of Punjab, Unity Foods and K-Electric, reflecting 35pc of the total turnover.

Sector-wise, commercial banks were lower by 161 points and cement 123 points together dragged the index down by 284 points. Exploration and production gave up 78 points and oil and gas marketing companies took away 50 points. On the other side, pharmaceuticals added 19 points and autos 15 points.

Major contribution to the downside came from Lucky Cement, down 2.92pc, Engro Corporation 1.74pc, Pakistan Petroleum 1.68pc, Pakistan Tobacco 4.98pc and MCB 1.70pc, taking away 174 points. On the flip side, Dawood Hercules, up 5pc, Searle Company 5pc and Engro Polymer and Chemicals 3.86pc added 78 points.

Published in Dawn, November 6th, 2018