KARACHI: Extending the overnight sell-off, the stock market plunged 214.57 points (0.44 per cent) to close at 48,757.67 on Tuesday. But as panic gave way to reason, companies and individuals started to accumulate stocks at attractive levels.
But mutual funds, mainly the capital protected funds, decided to book profit in an uncertain market. After three days of buying, foreign investors were net sellers. Investors were, however, comforted with the knowledge that despite about 3pc decline in three days, the KSE-100 index recorded gain of 951 points (1.9pc) in January.
The index plunged 623 points immediately after the opening bell but bounced back to a plus of 171 points only to succumb to selling pressure by the close. Head of Research at Taurus Securities Yawaruz Zaman said that the index already having climbed above the 50,000 points, the market needed a reason to correct itself.
And that came in the form of President Donald Trump executive order over the weekend, banning citizens from seven Muslim-majority countries from entering the US and a hint of inclusion of Pakistan among those countries.
The investors concerns were exacerbated by the SECP’s notices to brokerage houses on compliance issues in regard to extension in-house badla, together with the NCCPL step of excluding 67 stocks from the list of margin financing eligibility.
Despite the sell-off, about 18 stocks closed on their upper circuits in contrast to 15 closing on lower limits. Volume stood at 317m shares, relatively lower than 10 days moving average of 463m shares.
“Index-heavyweights remained under pressure where Lucky Cement, Habib Bank and MCB Bank cumulatively contributed 108 points to the day’s decline,” stated dealers at Topline Securities.
“From sector perspective, telecommunication fell 1.38pc, financials 0.92pc and consumer discretionary 0.89pc took their toll on market sentiment,” said analysts at Intermarket Securities.
courtesy : dawn news