KARACHI: The 14-day bull run that saw the KSE-100 index climb by whopping 10pc, came to a screeching halt on Wednesday as it plunged by 216.75 points (0.46 per cent) at 46,993.31.
At mid-day, investors went into panic-selling which pushed the index to free fall of 865 points to day’s lowest 46,344.88.
But institutional buying mainly in the last hour enabled the index to recoup much of the intra-day loss.
Most market watchers thought that a highly overbought PSX required long-due correction, which was healthy for the market. “Funny part is that since the index is trading at such a high altitude, the intra-day drop of 865 points looked daunting but in percentage terms it was only down 1.87pc versus the 10pc gain we saw in last 12 sessions. Yet, the day brought an end to the euphoria that lasted throughout this month,” said an analyst at Intermarket Securities.
Overall, volumes increased by 30pc over the earlier day of 450m shares, while trading value rose by 5.6pc to Rs21.7 billion.
Heavyweight Hub Power, Lucky Cement and United Bank contributed 114 points to the index fall. Banks retreated the most following a robust rally in the previous session with HBL down 0.24pc, MCB 0.09pc, UBL 1.41pc, FABL 4.86pc and ABL 0.28pc trading volatile after hitting intraday lows.
Trickle-down effect was seen across-the-board with oil and gas, fertilisers, cements, autos, steel, power, textile and pharmaceuticals retreating in sync with the broader market.
Dealers at JS Global noted that regardless selling pressure in the market, there was nominal decline in the E&P sector only, as the crude oil prices surged to trade above $53.50 a barrel.
Courtesy : Dawn News