Volatility returns as market plunges over 3,000 points
Pakistan’s benchmark stock index, the KSE-100, plunged 3,714.57 points on Friday, reversing some of the strong gains recorded in the previous session.
The index declined to 157,496.10 points, 2.3 per cent down from its previous close of 161,210.67 points. The intraday high was 161,435.83 points while the intraday low hit 157,072.64 points, slightly lower than the closing mark.
The fall comes a day after the benchmark staged a sharp recovery, closing Thursday in the green with a gain of 5,433.46 points.
After Thursday’s positive session, investors came in to sell before the weekend, as fear grow the US-Iran conflict with Iran may turn into a prolonged war, according to Topline Securities.
Friday’s session was marked by pronounced early volatility. The index dropped sharply around 9:20am, briefly recovered by 9:25am, and then fell again by 9:34am. It regained some momentum until about 9:40am before resuming a steady downward trajectory.
Among the most actively traded stocks so far:
- K-Electric: down 2.98pc to Rs7.81 on a volume of 36,917,726 shares.
- Cnergyico PK Limited: down 4.01pc to Rs6.70 on a volume of 22,424,861 shares.
- Unity Foods Limited: down 6.15pc to Rs9.46 at a volume of 19,052,764 shares.
Analysts at Topline Securities noted that the top negative contribution to the index came from United Bank Limited, Engro Holdings Limited, Fauji Fertilizer Company Limited, Lucky Cement Limited, The Hub Power Company Limited, Meezan Bank Limited, Systems Limited, Oil & Gas Development Company Limited, and Bank Alfalah Limited, as they cumulatively contributed -2,124 points to the index.
The brokerage house also highlighted that PPL (Rs1.83bn), OGDC (Rs1.66bn), ATRL (Rs62bn), UBL (Rs1.16bn), and NBP (Rs980mn) dominated the trading activity. Additionally, foreign investors remained net sellers during the session. Today’s FIPI net stood at -$2.05 million, while foreign corporate net outflows were recorded at -$4.11m.