Stocks lose 281 points on profit-taking
KARACHI: Bears ran amok for the second day at the stock market where the KSE-100 index extended losses by 281.33 points (0.82 per cent) and closed at 34,190.62 on Tuesday.
In the absence of positive triggers, worries over several issues weighed on the investors’ mind. Major index heavyweight sectors which included banks, exploration and production, cement and auto were badly battered.
Investors thought prudent to dump stocks based mainly on gas as fuel as they thought the higher costs of gas resulting in higher production may not be possible to pass on to the consumers amidst lower aggregate demand.
Grim economic outlook; investors’ concerns over the possibility of downgrade of Pakistan to Frontier Market Index from Emerging Market in the MSCI annual review due this week and government’s resolve of launching strict action against non-filers and tax evaders after the end of amnesty scheme spooked investors.
Negative sentiments were also fuelled by the statement of the outgoing Financial Action Task Force (FATF) president that Pakistan has failed to implement the action plan and there is a possibility of it being placed in the FATF Black List in October.
The sentiments were further dampened by the heated atmosphere on the political front where the government and opposition were on a collision course.