Benchmark index decreases 2.65%, to settle at 30,520.60 points. PHOTO: AFP
In the morning, trading kicked off on a negative note with the KSE-100 index starting diving from the beginning. The downtrend in the market came on the back of weak domestic and global cues.
Despite a significant improvement in the current account data, investor confidence once again took a hit as macroeconomic worries mounted due to a massive increase in debt and liabilities.
Pakistan's debt and liabilities dangerously exceeded the size of the economy and peaked to a record Rs40.2 trillion at the end of last fiscal year in June 2019. It was in contrast to the government's promises.
Ongoing tensions between India and Pakistan over Kashmir also weakened investor sentiment and added to the market woes.
At close, the benchmark KSE 100-share Index recorded a decrease of 829.42 points, or 2.65%, to settle at 30,520.60 points.
JS Global analyst Maaz Mulla said equities were negative with the benchmark KSE-100 index nosediving 829 points.
"The bourse came under pressure, in line with regional peers, after the latest escalation in the US-China trade war renewed uncertainty about global economies," the analyst said.
Crude oil, on the other hand, plummeted in the international market, dropping to the lowest in more than two weeks. Oil and Gas Development Company (-5%) and Pakistan Petroleum (-5%) closed limit down whereas Pakistan Oilfields (-3.5%) also received a hammering in the exploration and production sector.
In the cement sector, Lucky Cement (-4.7%) was a major laggard, contributing to the market's negative close while Maple Leaf Cement (-5%), Cherat Cement (-4.7%) and DG Khan Cement (-5%) were at or near their lower limits.
In the fertiliser sector, Engro (-3.7%) had a negative contribution to the benchmark index. In the financial sector, HBL (-1.8%), MCB Bank (-1.6%) and UBL (-1%) were the major laggards.
Lotte Chemical announced its 1H2019 result, reporting earnings per share of Rs2.01 vs Rs0.89 in the same period of previous year with no cash payout.
"Moving ahead, we expect the market to remain negative until further clarity on the FATF front and pressure on oil prices," the analyst said.
Overall, trading volumes decreased to 122.1 million shares compared with Friday's tally of 230.7 million. The value of shares traded during the day was Rs3.8 billion.
Shares of 335 companies were traded. At the end of the day, 56 stocks closed higher, 269 declined and 10 remained unchanged.
Lotte Chemical was the volume leader with 19.8 million shares, gaining Rs0.23 to close at Rs16.52. It was followed by The Bank of Punjab with 6.98 million shares, losing Rs0.51 to close at Rs7.94 and Maple Leaf Cement with 6.6 million shares, losing Re1 to close at Rs18.97.
Foreign institutional investors were net buyers of Rs214.2 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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