KARACHI: Pakistan Stock Exchange on Tuesday nosedived and recorded worst ever single day decline due to panic selling on investor deep concerns over prevailing uncertainty on political front in the country. Although, the market witnessed some support in early hours of the session on the back of foreign buying, however nosedived in deep red zone due to panic selling and closed with heavy losses.
The benchmark KSE-100 index plunged by 3,505.62 points or 3.57 percent and closed at 94,574.16 points. During the session, the index initially hit new intra-day highest ever level of 99,819.59 points, however due to panic selling dropped in deep red to hit 94,180.60 points intra-day low level.
Total daily volumes on ready counter increased to 1,116.324 million shares as compared to 640.258 million shares traded on Monday while total daily traded value on the ready counter increased to Rs 43.291 billion against previous session’s Rs 25.623 billion.
BRIndex100 decreased by 415.15 points or 3.95 percent to close at 10,089.31 points with total daily turnover of 935.333 million shares.
BRIndex30 declined by 1,717.55 points or 5.5 percent to close at 29,508.83 points with total daily trading volumes of 512.779 million shares.
The foreign investors however remained net buyers of shares worth $2.108 million. Total market capitalization declined by Rs 481 billion to stand at Rs 12.052 trillion. Out of total 456 active scrips, 355 closed in negative and only 53 in positive while the value of 48 stocks remained unchanged.
K-Electric was the volume leader with 101.636 million shares however lost Re 0.54 to close at Rs 4.65 followed by Bank of Punjab that gained Re 0.04 to close at Rs 6.85 with 92.023 million shares. Hascol Petroleum increased by Rs 1.24 to close at Rs 13.59 with 73.320 million shares.
Sapphire Textile Mills and Mehmood Textile Mills were the top gainers increasing by Rs 40.88 and Rs 35.02 respectively to close at Rs 1,177.99 and Rs 535.40 while Rafhan Maize Products Company and Unilever Pakistan Foods were the top losers declining by Rs 141.07 and Rs 112.79 respectively to close at Rs 7,813.48 and Rs 19,019.35.
Muhammad Sohail, leading analyst and CEO at Topline Securities said that the KSE-100 Index witnessed its largest-ever single-day decline, dropping 3,506 points (down 3.57 percent) to close at 94,574 level. This steep fall was driven by political uncertainty stemming from a party’s march toward the capital, shaking investor confidence. Intraday, the index swung between a low of minus 3,899 points and a high of plus 1,739 points.
He said the State Bank of Pakistan’s (SBP) removal of the Minimum Deposit Rate (MDR) on conventional banks for companies, alongside its directive for Islamic banks to pay at least 75 percent of the weighted average gross yield on PKR savings individual deposits, further unsettled the market.
Islamic banks MEBL, FABL, and BIPL hit their lower price locks (down 10 percent), while negative contributions from MEBL, FFC, OGDC, PPL, and HUBC dragged the index down by 1,385 points. On the positive side, HBL, HMB, BAHL, and BAFL added 282 points, softening the blow.
Ahsan Mehanti at Arif Habib Corporation said panic selling witnessed at PSX amid political turmoil after prolonged PTI protest in the capital. Banking sector outperformed on SBP decision to drop Minimum Profit Rate requirements on deposits of FIs, PSEs and PLCs.
He said political uncertainty, foreign outflows and selling pressure on PSX future contracts rollover played a catalyst role in record bearish activity.
BR Automobile Assembler Index declined by 687.26 points or 3.63 percent to close at 18,255.61 points with total turnover of 6.804 million shares.
BR Cement Index plunged by 606.26 points or 6.1 percent to close at 9,336.66 points with 45.307 million shares.
BR Commercial Banks Index lost 157.0 points or 0.57 percent to close at 27,418.15 points with 218.583 million shares.
BR Power Generation and Distribution Index eroded 835.67 points or 5.08 percent to close at 15,609.21 points with 128.970 million shares.
BR Oil and Gas Index decreased by 511.35 points or 5.29 percent to close at 9,152.25 points with 163.556 million shares.
BR Tech & Comm Index fell by 204.85 points or 4.37 percent to close at 4,481.57 points with 115.716 million shares.
Mubashir Anis Naviwala at JS Global Capital said political uncertainty triggered a market correction of 3,900 points during intraday trading. After peaking at an intraday high of 99,819 points, widespread panic selling ensued across all sectors, except for conventional banks, which outperformed due to the SBP’s relaxation of the minimum profit rate.
Copyright Business Recorder, 2024
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