KARACHI: Stocks suffered massive battering which left the KSE-100 index bleeding profusely by the end of the day as it lost 606.09 points (1.49 per cent) to finish only slightly above the 40,000 level at 40,070.83.

A huge sum of Rs110 billion was wiped off the market capitalisation where 302 shares among the total active scrips of 398 ended in the red and only 86 closed higher. It was the third day of a bloodbath in the week.

First half of the day was eventless with the index going back and forth, but shares went into panic selling in late hours as negatives started to weigh heavily on investor sentiments. Fearing another blow to the economy, investors started to quit stocks for safer bets as micro smart lockdown was imposed in some areas of Karachi due to sudden spurt in coronavirus cases.

Individuals and companies started to unwind their positions as no one wanted to carry a heavy portfolio over the weekend in the face of growing uncertainty on the political front. Mutual funds sold shares worth $4.85 million to meet redemptions. Foreign investors were net sellers of shares of $0.60m. The only major buyers were in insurance that put cash to use by picking equity as it fell sharply. The index plunged to the intraday low by 771 points.

The volume slipped 6pc to 348.6m shares. Hascol from oil marketing topped the charts, followed by K-Electric and TRG. Traded value also declined by 1pc to $75.6m.

Moreover, oil in the international market dropped nearly 4pc after US President Donald Trump was announced to have tested positive for Covid-19. Exploration and production and financials were the major laggards where Pakistan Petroleum, down 3.6pc, Oil and Gas Development Company 3pc, Pakistan Oilfields 2.7pc, Habib Bank 1.2pc, MCB 0.7pc, Engro Corporation 1.3pc, Lucky Cement 1.3pc and Pakistan State Oil 3.2pc closed in the red.

Published in Dawn, October 3rd, 2020