Panic-induced selling, security concerns take toll on investor sentiment PHOTO:FILE
After opening positive, the index gradually receded in the red, losing over 1% to end near the 47,500 level.
At close, the Pakistan Stock Exchange's (PSX) benchmark index ended with a fall of 511.06 points or 1.06% to finish at 47,577.31.
KSE-100 ends 0.29% down as intra-day gains wiped off
According to Elixir Securities analyst Faisal Bilwani, equities tanked amid ambiguities over the country's politics.
"The benchmark index was pulled down as key investors continue to resist temptation of taking advantage of the ongoing weakness owing to uncertainty and anxiety over domestic politics," he said.
"National Bank (NBP PA -5%) contributed most to the day's losses and closed at its lower price limit after Elixir Securities' note highlighted concerns on a possible serious dent to the bottomline from pension obligations where the matter remains under litigation.
"Other banking names also followed suit to close lower with Habib Bank (HBL PA -2.1%) and MCB Bank (MCB PA -1.5%) testing key support on reported institutional selling," he added.
Foreign investors buy as index gains 0.15%
Meanwhile, according to JS Securities, the pressure in the market was on the back of investor skepticism regarding the political scenario.
"Banking sector led the decline as the sector lost to close (-2.6%) lower. (HBL -2.08%), (MCB -1.52%) and (NBP -5%) in the aforementioned sector lost value to weigh down on the index," said analyst Nabeel Haroon.
"(POL -0.51%) closed marginally lower whereas (PPL +0.23%) and (OGDC +0.29%) on the other hand closed in green zone. (AICL -3.86%) failed to garner investor interest in the bearish market, in spite of posting a robust growth in its bottom line in result announcement for 2016.
"Moving forward, we expect the market will continue its bearish momentum and recommend investors to see any upside in the market as an opportunity to sell," he added.
KSE-100 snaps losing streak, gains 120 points
Overall, trading volumes rose to 185.5 million shares compared with Tuesday's tally of 135 million.
Shares of 384 companies were traded. At the end of the day, 69 stocks closed higher, 303 declined while 12 remained unchanged. The value of shares traded during the day was Rs8.9 billion.
Aisha Steel Mill was the volume leader with 13.2 million shares, losing Rs0.74 to close at Rs24.35. It was followed by Byco Petroleum with 12.5 million shares, losing Rs0.74 to close at Rs22.25 and Azgard Nine with 12.4 million shares, losing Rs0.24 to close at Rs12.8.
Foreign institutional investors were net buyers of Rs804 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
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