Benchmark index loses 6.75% to close at 30,416.05. PHOTO: FILE
KARACHI: Pakistan Stock Exchange (PSX) witnessed another bloodbath on Wednesday as the benchmark index nosedived at the very start of trading, triggering a 45-minute halt with a drop of 1,683 points at 10:17am for the second time in the current week.
The KSE-100 index has lost 5,645 points since the start of the week - the highest three-day decline in the bourse's history. In percentage terms, the index shrank 15.7% in the past three consecutive sessions - the biggest three-day decline since June 1, 1998 (21.7%).
Selling pressure was witnessed across the board as coronavirus pandemic caused mayhem across the world. A swift reaction also came following the announcement of near-lockdown in Sindh and comments by the prime minister that virus cases were likely to rise.
Despite a 75-basis-point policy rate cut to 12.5% by the central bank, the investors still opted to shun risky assets and coronavirus scare loomed over the bourse. Growing concern over the potential impact of the fast spreading disease on trade and overall economic growth significantly dented investor sentiment.
Furthermore, Moody's ratings agency lowered Pakistan's growth forecast to 2.5% in FY20 in the wake of the virus outbreak that played the role of a catalyst in the market's crash.
At close, the benchmark KSE-100 index recorded a decrease of 2,200.88 points, or 6.75%, to settle at 30,416.05.
Moreover, the US stock futures and several Asian shares fell in choppy trade on Wednesday as worries about the coronavirus pandemic eclipsed hopes a broad policy support would help combat the economic fallout of the outbreak.
Most traditional safe-haven assets were also under pressure as battered investors looked to unwind their positions, leading to wide discrepancies between various markets.
Arif Habib Limited in its report stated that the market showed its disappointment in full force over the lower-than-expected policy rate cut by the State Bank.
"The situation worsened over time and majority of the stocks hit their lower circuits, causing the index to plunge by a total of 2,238 points during the session," it said.
"Although international markets traded positive on Tuesday but futures contracts of different indices failed to maintain the momentum, which also caused investors to stay cautious."
Sectors that contributed to the decline of the index included banking (-582 points), fertiliser (-320 points), exploration and production (-292 points), cement (-198 points) and power (-164 points).
Meanwhile, stocks that contributed significantly to the volumes were K-Electric Limited, The Bank of Punjab, HBL Investment Fund, Maple Leaf Cement and Unity Foods, which accounted for 36% of the total volume.
Overall, trading volumes decreased to 186.7 million shares compared with Tuesday's tally of 240.4 million. The value of shares traded during the day was Rs5.3 billion.
Shares of 363 companies were traded. At the end of the day, 20 stocks closed higher, 336 declined and seven remained unchanged.
K-Electric was the volume leader with 25.5 million shares, losing Rs0.35 to close at Rs2.88. It was followed by The Bank of Punjab with 19.6 million shares, losing Rs0.46 to close at Rs8.04 and HBL Investment Fund with 9.1 million shares, losing Rs0.10 to close at Rs2.70.
Foreign institutional investors were net sellers of Rs166.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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