Cement stocks lead 653-point decline on PSX
KARACHI: Bloodbath was witnessed at the stock market on first trading day of the week as the KSE-100 index plunged 653.30 points (1.86 per cent) to close at 2-month low of 34,471.95.
The market took off to a positive start and crawled to intraday high by 69 points. But the upward momentum could not be sustained as the market went into panic selling with red splashed all across the board with the index hitting intraday low by 757 points.
Cement sector was the leading loser of 106 points as distributors protested and demanded the reversal of a budgetary measure particular to the industry. As a result, investors in the sector ditched stocks as the new budgetary measure requires the presentation of CNIC for purchase of cement which was believed to hit the despatches. Consequently, most cement stocks including Lucky, Maple Leaf, Kohat, DG. Khan, Cherat and Fauji hit their lower circuits.
Institutional investors stood on the sidelines on growing political noise and the flare up of emotional debates between the government and the opposition in the parliament on budget 2019-20. Investors’ sentiments also dampened as there was no sign of market support fund to which the finance minister had conceded more than a month ago.