KARACHI: Pre-election jitters sent shares reeling down on Monday with the KSE-100 index down by 758 points (1.84 per cent) to close at 40,464.

The index was washed off nearly three-quarters of all the gains made last week. The sell-off was led by asset managers as mutual funds were the major spoilers of the market dumping stocks worth $9m, according to figures released by the National Clearing Company of Pakistan.

Incidentally, foreign investors turned net buyers of $2.4m worth shares. The remaining mutual fund selling was absorbed by individuals who purchased net $5m of shares.

Institutions stayed on the sidelines, reluctant to take fresh positions before the Wednesday’s general elections, which was noted by an almost 51pc decline in volume over the last session and 42pc in traded value of stocks.

Retail names dominated the top ten volume leaders as Pakistan International Bulk Terminal, K-Electric, Lotte Chemical, Bank of Punjab and DG Khan Cement collectively contributed 31pc to total turnover.

Commercial banks

lost steam as the sector wiped off 218 points, followed by oil and gas exploration companies also pulled the index down by 154 points.

Other sectors that contributed to the poor showing included cement, lower by 86 points, oil and gas marketing companies 64 points and fertiliser 57 points. Apart from politics, investors were also worried about the declining foreign exchange reserves and lower oil prices.

Major contribution to the index downside came from Pakistan Petroleum, down 3.18pc, Habib Bank 2.14pc, MCB Bank 2.59pc, Lucky Cement 2.97pc and Hub Power 2.64pc, taking away 247 points. On the flip side, Philip Morris Pakistan, up 5pc, added 7 points.

Most market participants believe the trend to remain dull rest of the week or until the dust settles on the political front. A clear majority by any party in the elections was looked up as a major trigger for the market.

Published in Dawn, July 24th, 2018