Benchmark index decreases 1,105.49 points to close at 39,143.73. PHOTO: REUTERS
Moreover, a decrease in international crude oil prices sparked worries and pushed oil stocks down. The Financial Action Task Force (FATF)'s announcement of keeping Pakistan in the grey list also played the role of a catalyst in the market's close deep in the red.
At close, the benchmark KSE-100 index recorded a decrease of 1,105.49 points, or 2.75%, to settle at 39,143.73.
Talking to The Express Tribune, Next Capital Managing Director Muzammil Aslam said the KSE-100 index fell in line with the global stock markets over growing concern about the spread of coronavirus.
"Asian markets were particularly affected by the Korean stock market, which plunged nearly 4%," he said. "Pakistan's bourse took cue from the Asian markets and plummeted."
In addition to that, he pointed out, oil was a heavyweight commodity in Pakistan and a dip of nearly 3.5% in global crude prices during trading hours added to the woes of investors.
The outcome of FATF review of Pakistan's measures to fight money laundering and terror financing was also not in line with market expectations, hence, it also sparked sell-off.
Endorsing Aslam's views, BMA Research Executive Director Saad Hashmi said the market mainly fell due to the prevailing fear of coronavirus.
"A rising number of cases in neighbouring Iran have left investors worried, who fear the virus may spread to Pakistan as well," he said. "Hence, the investors took a cautious stance and offloaded their stockholdings."
Arif Habib Limited, in its report, stated that the market shed 1,169 points during the day and ended down by 1,105 points.
"Concerns over the pending IMF executive board's decision on releasing the next loan tranche for Pakistan, worries over growing number of coronavirus cases in neighbouring Iran and decline in international crude oil prices caused panic among investors," it said.
Foreign investors had largely been sellers in the past couple of sessions due to possible de-tracking and reversal of rupee depreciation, it said.
Stocks that contributed significantly to the volumes included Hascol Petroleum, Unity Foods, K-Electric, The Bank of Punjab and Maple Leaf Cement, which accounted for 35% of the total volumes.
Stocks that contributed positively were Nestle (+37 points), Millat Tractors (+4 points), Dolmen City REIT (+1 point) and EFU General Insurance (+1 point).
Meanwhile, stocks that contributed negatively included Pakistan Petroleum Limited (-86 points), HBL (-78 points), Hubco (-67 points), UBL (-67 points) and Oil and Gas Development Company (-60 points).
JS Global analyst Danish Ladhani said equities closed on a negative note with the benchmark KSE-100 index shedding 1,105 points and closing at 39,144.
"The market nosedived on heightened panic and casualties caused by the coronavirus. Local market remained bearish in line with the peer markets," he said.
"Going forward, we expect the market to remain bearish in the short term on the back of uncertainty on the macro front," Ladhani concluded.
Overall, trading volumes increased to 144.3 million shares compared with Friday's tally of 85.6 million. The value of shares traded during the day was Rs5.5 billion.
Shares of 345 companies were traded. At the end of the day, 44 stocks closed higher, 285 declined and 16 remained unchanged.
Hascol Petroleum was the volume leader with 14.4 million shares, losing Rs1.44 to close at Rs20.96. It was followed by Unity Foods with 11.5 million shares, decreasing Re1 to close at Rs13.27 and K-Electric with 10.6 million shares, losing Rs0.16 to close at Rs3.91.
Foreign institutional investors were net sellers of Rs466.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ