Stocks plunge 672 points on economic concerns

Published July 19, 2019
The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54. The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54. — AFP/File
The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54. The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54. — AFP/File

KARACHI: The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54.

The ghosts of investors’ suspicion on the end to State Bank of Pakistan monetary tightening; International Monetary Fund conditions for the bailout and economic worries came to haunt them as they decided to quit the market for safer investment avenues. To all of that was added the mounting political risk after the National Accountability Bureau picked up key opposition leader over corruption charges.

Market stayed positive in early trade with the index making intraday high by 32 points, but soon succumbed to selling pressure that pulled it down to intraday low by 758 points. Selling was observed across the board, but most market observers said that it was triggered by significant volume in Habib Bank.

According to figures released by the National Clearing Company of Pakistan, foreigners continued to take advantage of attractive valuations and bought stocks worth $2.65 million while mutual funds sold stocks valued at $3.20m, possibly to meet redemptions.

The volume declined 22pc to 86m shares, from 112m whereas traded value edged up by 0.9pc to reach $23.4m as against $23.2m. Cement sector came under the hammer as hike in interest rate and power tariffs would put further cost pressure. DG Khan; Maple Leaf; Cherat; Pioneer and Fauji hit their lower circuits.

Sector-wise, other big losses were noted in oil marketing companies, banks, exploration and production companies and fertiliser sector.

Major drag to the index came from Engro Corpora­tion, lower by 3.92pc, Pakistan Petroleum 3.87pc, Habib Bank 2.69pc, Oil and Gas Development Company 2.14pc, Hub Power 1.50pc, Sui Northern Gas Pipelines 4.99pc and Pakistan State Oil 3.29pc. On the flip side, Mari Petroleum, Pakistan Oil­fields, Shifa Inter­national, HBL Growth Fund and Atlas Honda Ltd made minor gains.

Published in Dawn, July 19th, 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

PAKISTAN has now registered 50 polio cases this year. We all saw it coming and yet there was nothing we could do to...
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...
Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...