KARACHI: Bears were all over the stock market on Tuesday as the KSE-100 index plunged 903 points (2.15pc) to close at 41,115.78. As distraught investors started to jettison shares, the market losses since May 24 peak increased to 22pc.
At the heart of investors’ nervousness were the developments on the political front. Former prime minister Nawaz Sharif was elected president of PML-N unopposed as the controversial Election Act 2017, which was signed into a law on Monday by President Mamnoon Hussain, allows disqualified politicians to become political party heads.
In a separate development, a division bench of the Islamabad High Court rejected two petitions filed a day earlier by Finance Minister Dar challenging his indictment by an accountability court. And to top it all, the army chief summoned a ‘special’ corps commanders meeting to review the country’s situation.
As investors offloaded trading positions fearing the worsening of situation, stocks dropped like ninepins. “Participants lined up in droves to sell whatever they could at whatever rates,” said dealers at Topline Securities. The volume rose 39pc over the previous session to 121m shares while the traded value was up 69pc to Rs6.8bn.
But for all that, the figures released by the National Clearing Company of Pakistan (NCCPL) in the evening showed an interesting trading pattern. During the day individuals, companies, bank and even foreign investors were all net buyers. The market spoilers were the mutual funds, which disposed of equity worth $4.21m and insurance companies that sold shares of $4.86m.
Although selling was all across the board, cement stocks were the worst hit. The cement sector took away 189 points from KSE-100 index. Lucky Cement, DGKC, FCCL, MLCF, CHCC, PIOC, KOHC, BWCL, FECTC and GWLC all hit their lower circuits.
Top 10 index point decliners were HBL that went down 2.8pc, Lucky Cement 5pc, Engro Corp 3.9pc, PPL 3.1pc, SNGP 5pc, OGDC 2.2pc, DGKC 5pc, FFC 2.4pc, DAWH 3pc and FCCL 5pc.
Published in Dawn, October 4th, 2017
