Stocks dip further as volume hits six-month low
KARACHI: Equities tumbled for the third straight session on Thursday with the KSE-100 index dropping by 295.81 points (0.77 per cent) and close at 38,011.63.
The market started off in a sombre mood with the index hitting intraday low by 540 points as economic and political concerns drove away investors from the market.
The traded volume dipped 43pc to over a six-month lowest turnover at 83.7m shares. Traded value also declined 42pc to Rs3.99 billion.
In anticipation of FTSE rebalancing next week, foreign funds started to balance their portfolios now as against the month-end activity where they need to keep cash positions handy. But major selling for the last two days emanates from mutual funds, where investors appear to be shifting cash to money market from equity funds in high interest rate environment.
The local investors’ disinclination to trade and stay on the sidelines was fanned by continuing economic uncertainty, political developments and the parleys with the International Monetary Fund.