Date: 15/1/2016
KARACHI: Selling intensified on the Pakistan Stock Exchange on Thursday as the KSE-100 index sank 713.15 points (2.22 per cent) to close at 31,441.02.
Blood was splattered all across the board as investors ditched equities and sought the safety of fixed income securities.
But the PSX was only following the global stock markets which suffered steep fall as some big international firms dealing in securities came up with dire prognosis for 2016.
Investors on PSX were further scared as rumours of investigation against major brokers were thick in the air.
The bloodbath was witnessed as the market extended its losing streak for the ninth session on Thursday with accumulated losses of 1,788 points (5.4pc).
Turnover increased to 190 million shares with improved trading value of Rs9.74 billion.
Intermarket Securities Director Raza Jafri said: “Trading on Friday will tell if the heavy sell-off with large volume signifies that the market has bottomed out or if there was going to be more bleeding.”
Some market participants suspected during the trading hours that the sell-off had been sparked by the mutual funds.
NIT, mutual fund with Rs88bn under management, COO Manzoor Ahmed assured this writer that NIT had avoided participation in Thursday’s selling.
He said that earlier some stocks were offloaded by NIT to improve liquidity to meet redemptions. He suspected that sentiments were leading the investors though market fundamentals were strong.
Major downside came from HBL, PPL, OGDC, FFC and DAWH which together accounted for a fall of 223 points in the index.
“OGDC and PPL closed at six-year low on record drop in crude prices,” pointed out an analyst.
Banks, fertilisers and even cements were all victims of heavy-selling, which dragged the index down.
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