KARACHI: The stocks continued their losing streak on selling spree for the fourth day with the investors attempting to ditch the risky assets in panic just about an hour before the close. It saw the index succumb to intraday low by 750 points.

The recovery in the last hour prompted by banks which took fresh positions at dips, helped the index to bounce back a bit and close with a loss of 519 points, or 1.12 per cent, at four-month low at 46,009 points.

The market opened positive on gains in banking stocks as the SBP raised the interest rate by 25 bps to 7.25pc. The index climbed to intraday high by 305 points. It was difficult to explain what rocked the boat, though rollover week could have been a matter of concern. A major brokerage house stated: “Despite low leverage level in the market in DFC, MTS and MFS segments, index melted due to calls of redemption at mutual funds”.

Global stocks fall was halted after money managers assured investors that the collapse of property giant China Evergrande Group’s crisis was not likely to destabilise the world financial system and the economy. A few analysts reckoned that the impact travelled to the PSX which unnerved investors who preferred to offload positions.

The trading volume jumped 67pc over the previous day to 326m shares. Telecard Ltd topped the volume leaders’ list. All heavy-weight shares in technology sector—Systems, Netsol, AVN and TRG dipped in the red.

Foundation securities stated that the market had overplayed the concerns of recent hike in energy prices and thus opened significant room for upside for cement stocks. But other analyst said that the pressure was witnessed in the cement sector on the back of interest rate hike where Flying, Dandot, Pioneer, Kohat, Maple Leaf and D.G. Khan were the major losers.

Banks, fertiliser, refinery and E&P sectors also contributed to the free-fall of the market. Stocks that dragged down the index included Systems (53 points), MEBL (37 points), HBL (34 points), Lucky Cement (32 points) and TRG (23 points).

Published in Dawn, September 22nd, 2021

Opinion

Editorial

Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.
Concerning measures
Updated 03 Nov, 2024

Concerning measures

The govt must seek political input and consensus on the changes it is seeking to make and be open about its intentions.
Short-lived relief?
03 Nov, 2024

Short-lived relief?

POLICYMAKERS must be jumping with joy. At the close of the first quarter of FY25, the budget posted a consolidated...
Brisk spread
03 Nov, 2024

Brisk spread

THE surge in polio cases has reached distressing levels with a tally of 45 last reported, after two cases emerged in...