The Pakistan Stock Exchange (PSX) saw a bloodbath on Tuesday, with the benchmark KSE-100 Index losing 1,389 points.
The benchmark index plunged 3.07 per cent, falling through the 44,000 level to close at 43,899 points. The market touched the day’s high at 45,419 as the benchmark showed some positive movement in the first few minutes, but failed to sustain the momentum.
The benchmark recorded a day’s low of 43,822 points near the close of the trading session.
The banking sector led activity at the bourse, with 31.3 million shares traded, followed by the chemical and the engineering sectors with 19 and 15.5 million shares, respectively.
A JS Global report attributed the sharp decline in the KSE-100 index level to the political uncertainty and selling pressure from foreign investors.
“OGDC (-3.95pc), ENGRO (-4.28pc), HBL (-1.76pc), MCB (-3.54pc) and HUBC (-3.35pc) were among major laggards that dragged the index down,” said the report.
“SSGC (-5pc) hit its lower lock on the back of news regarding OGRA cutting rate for Sui Southern gas by Rs10 per unit. ISL (-4.24pc) closed near its lower circuit. The company announced its year-end results posting an EPS of Rs7 and a final cash dividend of Rs3.50,” it said, adding that the oil and gas exploration and production (E&P) sector closed in the negative zone as oil prices slid for a second session, plumbing fresh three-week lows on a stronger dollar and concerns over a global supply glut.
According to the report, PPL (-2.93pc), POL (-2.04pc) and OGDC (-3.95pc) were among the losers from the aforementioned sector. PSO (-2.23pc), SSGC (-5pc) and SNGP (-5pc) from the oil marketing companies sector also witnessed selling pressure in the sinking market despite positive news for the sector where the Economic Coordination Committee is expected to consider increasing profit margins of oil marketing companies and dealers through prices of petroleum products.
MLCF (-4.14pc) from the cement sector released material information which stated an announcement of 12.50pc rights share issue at a price of Rs65/share for its grey clinker production, it added.
Ahsan Mehanti of Arif Habib Corporation said that the stocks closed bearish after reports emerged that the former premier would file an appeal, pleading the Supreme Court to dismiss the Panama Papers verdict.
“Foreign outflows, falling global crude prices, concerns for $3.2bn dismal trade deficit data for Jul’17 and pending circular debt in energy sector played a catalyst role in bearish close at the PSX,” he said.
A total of 85.4m shares of KSE-100 companies changed hands during the session, with a total worth of nearly Rs6.9 billion.
Stocks of 379 companies in all were traded on the exchange, of which only 39 gained in value, whereas 326 declined and 14 remained unchanged.