‘Dump and run’ at PSX as KSE-100 plunges over 1,630 points
Market talk suggests ongoing Panama case proceedings is the chief reason behind investors’ dump-and-run approach
Market talk suggests ongoing Panama case proceedings is the chief reason behind investors’ dump-and-run approach. PHOTO: AFP
KARACHI:
Investors adopted a dump-and-run approach as the KSE-100 Index plunged over 1,630 points or 3.5% in intra-day trading, falling below the 45,000 level with political uncertainty and lack of positive triggers doing enough to push stocks deep in the red.
The KSE-100 – a benchmark for market performance – underwent selling pressure from the word go, dipping to a low of 44,932 points at the time of filing this report with volumes remaining on the lower side.
Market watch: KSE-100 falls just ahead of Panama case verdict
Market talk suggested that the ongoing Panama case proceedings of the joint investigation team (JIT) probing Prime Minister Nawaz Sharif and his family’s offshore assets is the chief reason behind investors’ dump-and-run approach at the Pakistan Stock Exchange (PSX).
The index has been under immense pressure since the last week of May when Finance Minister Ishaq Dar, who is also due to appear before the JIT today, announced the federal budget that was widely seen as a negative for stock market investors.
An overbought market was then given a rude awakening when MSCI-related inflows, expected after Pakistan’s official reclassification as an emerging market was complete on June 1, fell below estimates.
Market watch: Stocks bloodbath as Pakistan upgraded to MSCI Emerging Markets
Subsequent heavy net selling by foreign investors, coupled with the JIT summoning the prime minister last month, has led to panic selling with the index shedding close to 15% in the last five weeks alone.
Analysts and followers expect that the stock market is likely to remain under pressure unless clarity emerges on Pakistan’s political front. On Monday, however, the index continued its ride in the red.
Engro Polymer, TRG and Ittefaq Iron Industries were the volume leaders with 9.3 million, 8 million and 5.4 million shares, respectively, changing hands by 1pm.
Investors adopted a dump-and-run approach as the KSE-100 Index plunged over 1,630 points or 3.5% in intra-day trading, falling below the 45,000 level with political uncertainty and lack of positive triggers doing enough to push stocks deep in the red.
The KSE-100 – a benchmark for market performance – underwent selling pressure from the word go, dipping to a low of 44,932 points at the time of filing this report with volumes remaining on the lower side.
Market watch: KSE-100 falls just ahead of Panama case verdict
Market talk suggested that the ongoing Panama case proceedings of the joint investigation team (JIT) probing Prime Minister Nawaz Sharif and his family’s offshore assets is the chief reason behind investors’ dump-and-run approach at the Pakistan Stock Exchange (PSX).
The index has been under immense pressure since the last week of May when Finance Minister Ishaq Dar, who is also due to appear before the JIT today, announced the federal budget that was widely seen as a negative for stock market investors.
An overbought market was then given a rude awakening when MSCI-related inflows, expected after Pakistan’s official reclassification as an emerging market was complete on June 1, fell below estimates.
Market watch: Stocks bloodbath as Pakistan upgraded to MSCI Emerging Markets
Subsequent heavy net selling by foreign investors, coupled with the JIT summoning the prime minister last month, has led to panic selling with the index shedding close to 15% in the last five weeks alone.
Analysts and followers expect that the stock market is likely to remain under pressure unless clarity emerges on Pakistan’s political front. On Monday, however, the index continued its ride in the red.
Engro Polymer, TRG and Ittefaq Iron Industries were the volume leaders with 9.3 million, 8 million and 5.4 million shares, respectively, changing hands by 1pm.