Abb Takk News

PSX in Grip of Bear as Index Loses over 300 Points in Early Trade

Karachi (July 4, 2017): The bearish trend prevailing in Pakistan Stock Exchange is continued as market resumed trading on Tuesday in the negative zone.

As per details, the selling spree on Pakistan Stock Exchange continued unabated as benchmark KSE-100 index lost over 300 points on Tuesday morning with resumption of trading activities.

With the loss of over 300 points, the KSE-100 index is trading at 44, 342 points level.

 

Monday saw a bloodbath at PSX as the benchmark KSE-100 index crashed by 1,900 points, the highest single-day decline.

The event brought back memories of Aug 15 last year when markets across Asia collapsed in the wake of an engineered depreciation in the Chinese yuan and the plunge of 4 pc in Aug 2014 during the prolonged and chaotic protests and sit-ins in Islamabad. Since the start of the year, the benchmark KSE-100 index has lost 6.7pc of its value after a brief rally in the first few months.

Monday’s fall obliterated Rs327 billion in PSX market capitalisation. Moreover, 72 stocks hit their lower circuits — the maximum permissible decrease in any stock in a single session — as the trading board flashed red all over.

Major bleeding was seen in HBL (-5pc), UBL (-5pc), LUCK (-5pc), OGDC (-5pc), MCB (-5pc), Engro (-4.1pc), Hubco (-4.7pc), DGKC (-4.8pc), FFC (-4.1pc) and PSO (-4.8pc), which together contributed 881 points to the index fall.

Sector-wise, banks shed 496 points, cements 256 points, fertilisers 232 points, E&P 189 points and OMC 138 points.

Many dealers pointed towards rising political uncertainty as the reason behind the panic selling on Monday as the date of submission of JIT report on July 10 drew nearer.

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