Stocks plunge 672 points on economic concerns
KARACHI: The stock market suffered another bout of intense selling pressure on Thursday with the KSE-100 index going into a tail spin to tank by 672.45 points (2.04 per cent) and close at 32,309.54.
The ghosts of investors’ suspicion on the end to State Bank of Pakistan monetary tightening; International Monetary Fund conditions for the bailout and economic worries came to haunt them as they decided to quit the market for safer investment avenues. To all of that was added the mounting political risk after the National Accountability Bureau picked up key opposition leader over corruption charges.
Market stayed positive in early trade with the index making intraday high by 32 points, but soon succumbed to selling pressure that pulled it down to intraday low by 758 points. Selling was observed across the board, but most market observers said that it was triggered by significant volume in Habib Bank.
According to figures released by the National Clearing Company of Pakistan, foreigners continued to take advantage of attractive valuations and bought stocks worth $2.65 million while mutual funds sold stocks valued at $3.20m, possibly to meet redemptions.