KARACHI: Stocks extended their decline for a third day when the KSE-100 index plunged by another 531.23 points, or 1.20 per cent, breaking the 44,000 psychological support and settling at 43,691.68 points on Wednesday.

The bear rampage has heavily dented the stock market since the start of the week with the KSE-100 index dragged down by 2,145 points, or 3.5pc, which market watchers said had wiped off all the gains since Jan 1.

Investors sentiments hit a new low on generally unfavourable developments on both the economic and political fronts. “Anticipation of government’s withdrawal of tax exemption in the wake of IMF programme, increase in electricity tariff and deferment of increase in petroleum prices have investors selling positions across the board with pressure points in Technology, Cement, Steel and O&GMC sectors,” said analysts at a major brokerage firm.

The index hit intraday high by 201 points for a while but plunged in the red as the day wore on. The index hit intraday low by 602 points. The gathering clouds on the political horizon spooked investors who decided to unwind positions ahead of the heated events of election of chairman and deputy chairman to the Senate followed by the opposition’s threat of a long march.

The once investors’ favourite technology sector came under major selling pressure where all previous hot cakes, Netsol Technologies, TRG Pakistan and Avanceon lost heavily. The other favourite refinery sector also saw all four listed scrips—ATRL, Byco, NRL and PRL — close with varying losses.

Cement sector started with recovery, but soon succumbed to selling pressure with Dewan, Cherat, D.G. Khan, Lucky and Maple Leaf shedding values. Heavy losses were seen also in the fertiliser, power, automobile and oil marketing companies.

Stocks that were the major laggards included TRG (76 points), Systems (52 points), Lucky Cement (43 points), Hub Power (35 points) and HBL (31 points).

Investor participation decline was represented by 26pc decrease in volumes over the previous session to 363.2m shares. Selling came mainly from insurance companies in the sum of $3.67m while mutual funds liquidated stocks worth 2.33m to meet redemptions. Banks were the major buyer of shares valued at $3.40m that prevented the index from further fall.

Published in Dawn, March 11th, 2021