Stocks lose over 700 points as foreign selling continues

Benchmark KSE-100 Index loses 1.7% to finish trading at 41,637.38

KARACHI: Bears continued to dominate the stock market on Friday as the benchmark index fell for the third successive session and closed below 41,700 points.

Growing concerns over Pakistan’s economic outlook led to panic selling by investors that pushed the index deep in the red. Heavy selling by foreigners also dented the KSE-100 significantly.

Although the index opened upwards, the positive trend did not last long and it tumbled 797 points in intra-day trading. There was across-the-board selling in stocks.

At close, the benchmark KSE 100-share Index recorded a slump of 721.23 points or 1.70% to settle at 41,637.38.

JS Global analyst Danish Ladhani said the market continued to decline steeply, hitting an intra-day low of -797 points. “This pressure was on the back of likely redemptions in mutual funds,” he revealed.



A major correction phase emerged in the market due to continuous foreign net outflows over the past week, he said.

Major contributors to the KSE-100 Index were Habib Bank Limited (-2.34%), Pakistan Petroleum Limited (-2.55%), Hubco (-3.46%), Oil and Gas Development Company (-1.95%) and Pakistan Oilfields Limited (-2.19%), which cumulatively erased 235 points from the index.

The cement sector received a hammering as heavyweights lost value. Maple Leaf Cement (-4.87%), DG Khan Cement (-2.55%), Lucky Cement (-2.34%) and Fauji Cement (-2.82%) were major losers of the sector.

The exploration and production sector lost value in the wake of selling pressure, but crude oil prices rebounded in the international market.

Pakistan Oilfields (-2.19%), Oil and Gas Development Company (-1.95%) and Pakistan Petroleum Limited (-2.55%) lost value to close in the red.

“Moving forward, we expect the market to remain volatile and choppy with flows from local and foreign institutions providing direction to the bourse,” the analyst added.

Overall, trading volumes decreased to 178.97 million shares compared with Thursday’s tally of 241.7 million. The value of shares traded during the day was Rs7.7 billion.

Shares of 347 companies were traded. At the end of the day, 75 stocks closed higher, 257 declined while 15 remained unchanged.

K-Electric was the volume leader with 20.3 million shares, losing Rs0.18 to close at Rs5.32. It was followed by The Bank of Punjab with 15.9 million shares, losing Rs0.35 to close at Rs12.44 and Lotte Chemical Pakistan with 11.9 million shares, losing Rs0.22 to close at Rs12.13.

Foreign institutional investors were net sellers of Rs1.2 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.