Panic selling as Pakistan Stock Exchange index tanks 6,700 points
Panic selling gripped the Pakistan Stock Exchange (PSX) all day long on Thursday as the share prices plummeted massively with index losing nearly 7,000 points, reported 24NewsHD TV channel.
Geopolitical tensions and rising international oil prices weighed heavily on market sentiments, as the PSX’s benchmark KSE-100 index which opened significantly lower and continued to decline steadily throughout the day with minor rebounds, ended the day with massive losses.
Selling pressure intensified throughout the final trading hours, pushing the index to an intra-day low of 171,647.33. At one point the index crashed by over 7,200 points.
At close, the index settled at 172,170.29, a decrease of 6,682.80 points or 3.74%. This marks the highest-ever single-day decline, said experts.
The market remained under pressure as rising oil prices and escalating US-Iran tensions dampened investor sentiment, the experts said, adding apart from foreign investors, local investors also turned cautious, contributing to the selling pressure.
Selling was observed in key sectors, including cement, commercial banks, fertilizer, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, PSO, SNGPL, MCB, MEBL and NBP, traded in the red.
On Wednesday, PSX had staged a decisive recovery as aggressive buying propelled benchmark indices sharply higher, reversing a portion of the steep losses suffered in recent sessions. The rebound was supported by strong participation from both institutional and retail investors, as value-hunting emerged following the recent correction.
The KSE-100 Index closed at 178,853.10 points. Volume on the all-share index declined to 542.98 million from 697.68 million recorded in the previous close.
The value of shares decreased to Rs27.36 billion from Rs50.00 billion in the previous session.
WorldCall Telecom was the volume leader with 84.18 million shares, followed by K-Electric Ltd with 62.01 million shares, and Trust Sec. & Bro.(R) with 45.87 million shares.
Shares of 483 companies were traded on Thursday, of which 32 registered an increase, 384 recorded a fall, and 67 remained unchanged.
Reporter Kavish Memon