KARACHI: A repeat of the previous week’s same day carnage was witnessed at the stock market on Thursday where the shares fell like ninepins across the board. The KSE-100 index bled profusely by 912 points, or 2.09 per cent, to settle below the 43,000 points at 42,780—the lowest level seen in the last 63 sessions.

The index hit its intraday low by 1,003 points only 15 minutes before the end of trading. The four-day selling spree has eroded a staggering 3,058 points, or 6.7pc, from the index, showing the highest four-day losing streak since March 18, 2020 when the lockdowns were first clamped to stem the spread of Covid-19.

The bloodbath on Thursday was triggered as panicky investors sold off their holdings with looming uncertainty over the results of the elections to the seat of chairman and deputy chairman of the Senate to be held on Friday.

On the economic front, concerns of a rate hike in the upcoming Monetary Policy on rising inflationary pressures, IMF’s stringent conditions, hike in cut-off yields by 25-34bps in the T-Bill auction held on Wednesday, suspected major margin calls and rising Covid-19 cases leading to partial lockdowns spook­­ed investors who decided to book profit.

Analysts at Arif Habib Ltd said that although the FBR issued clarification on withdrawal of tax exemptions, the investors remained perturbed on anticipation of levy of additional taxes that made the leveraged investors close their positions at market rates rather than meet the margin requirements.

On Thursday, market value of all shares fell by Rs184bn. Technology, banks, automobiles, E&P, power, O&GMC, textile and cement sectors contributed to the day’s losses.

Stocks that wiped off 349 points from the index included OGDC (4.3pc), HBL (2pc), Lucky Cement (1.7pc), Engro (1.5pc), Hubco (1.8pc), TRG (7.5pc) and The Searle (4.8pc).

As many as 51 shares closed at their lower circuit, representing erosion of 7.5pc of their values, the maximum allowable in a day. Most stocks that had spearheaded the long bullish rally were seen among the highest losers including NRL, ATRL, Netsol, TRG, GHNI, Sazew and AVN.

The trading volume increased 12pc over previous day to 406m shares.

Published in Dawn, March 12th, 2021