Stocks bleed for seventh consecutive day

Published September 28, 2021
Traders said that it was the new investors who enter to dabble in stocks that helped the index lift higher in early trade. — AFP/File
Traders said that it was the new investors who enter to dabble in stocks that helped the index lift higher in early trade. — AFP/File

KARACHI: Stocks continued to bleed for the seventh session in a row after foreign investors dumped shares worth $2.65m, broker proprietary trading sold off stocks of $2.65m and risk-averse individuals sought an exit by sale of shares worth $1.14m on Monday.

Insurance companies mopped up much of liquidity. At the close the index showed loss of 256 points, or 0.57 per cent, at 44,818, knocking off another support level of 45,000. In the seven-day losing spree, the index has melted by 2,102 points, or 4.52pc.

The market started positive as witnessed in most previous sessions and stocks started to gain values which carried the index to intraday high by 163 points. It was followed by panic-selling that saw the index succumb to intraday low by 732 points.

Traders said that it was the new investors who enter to dabble in stocks that helped the index lift higher in early trade. However, the strikingly similar pattern every session suggested that some individuals and institutions may be riding out the volatility to make sizeable gains.

Analysts at a major brokerage house said that leveraged positions mostly got a thrashing while resumption of rupee slippage and higher commodity prices were other reasons for the panic-selling in market. Nonetheless, selling subsided by the end of session.

Sectors contributing to the performance included Banks (101 points), refinery (34 points), paper and board (25 points), investment banks (23 points) and pharma (20 points). Stocks that contributed positively to the index included Systems (50 points), FFC (18 points), MTL (8 points), KTML (7 points) and EPCL (7 points). Stocks that dragged the index down included TRG (51 points), HBL (51 points), MEBL (29 points), UBL (18 points) and PSO (16 points). The trading volume remained thin at 301.4m shares, down 19pc from the previous 3689.5m shares. Apart from the small-cap sideboard items, trading was witnessed in some blue chips in fertiliser, E&P, O&GMCs. Cement managed to garner investor interest by the end of session that helped the index pull back.

Published in Dawn, September 28th, 2021

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

Opinion

Editorial

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...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...