Pakistan

KSE-100 index plummets 1,251 points during intra-day trading

Has decreased 12.8% since March 13 when major foreign funds resorted to huge divestments

Kazim Alam March 30, 2015

PHOTO: AFP

KARACHI: Prices of blue-chip stocks fell sharply across the board on Monday, with the benchmark index touching 28,707 points, down 4% from the beginning of the session, during intraday trading.

The Karachi Stock Exchange (KSE)-100 index had lost 1,251 points by 1:44pm mainly on the back of massive selling by local institutions as well as high net worth individuals (HNWIs), analysts said.

“Many HNWIs received margin calls today after two weeks of consistent declines in the benchmark index,” one broker said, while speaking to The Express Tribune.

Read: KSE-100 Index falls by over 800 points as foreign selling creates panic

This was in addition to the selling by local mutual funds that had to meet their clients’ requests for redemptions, the broker added.

The KSE-100 index has decreased 12.8% since March 13 when major foreign funds resorted to huge divestments. Net outflows of foreign portfolio investments between March 13 and March 27 have been $46.6 million.

Read: Weekly review: KSE-100 plummets 1,842 points as investors panic

Heavy selling was witnessed in almost all blue-chip stocks, including DG Khan Cement, Engro Corporation, Hascol, Hubco, Maple Leaf Cement, Nishat Chunian and PSO. Their share prices dropped 5% each, resulting in a halt in trading during the session.

Share prices of 320 companies went down but the increase was recorded in only 14 stocks by 2:00pm.

COMMENTS (10)

saad | 9 years ago | Reply local investors need to hold their nerves. if you sell now at loss others will buy at discount and you will be the ultimate losers. look what happened in 2008/09 the market crashed at that time but those who kept their stocks are the real gainers now.

raider | 9 years ago | Reply @Ch. Allah Daad: whenever KSC 100 INDEX GOES UP then credit goes to incumbent Govt when it plummets then credit goes to Imran khan or any other rival, but i would like to add one sentence , it is not that material, give them 100 years result will be same

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Ch. Allah Daad | 9 years ago | Reply @Mein Ch Allah Daad banna chahta hun!: You are right. When establishment stooges ( Imran is one of them) start commenting on foreign policy, such disasters are expected. Imran should know that 4 million Pakistani families live on remittances from Arab countries which means 50% of Pakistan's economy depends on Saudi Arabia and other Gulf states.

Wahid | 9 years ago | Reply @ML: Yes it couldn't possibly have anything to do with the US Fed threatening to raise interest rates. It's all about the model in the jail.

Mein Ch Allah Daad banna chahta hun! | 9 years ago | Reply All of the above comments are wrong. The market is dropping only because Imran Khan has threatened in favour for street protests if the govt backtracks from the judicial comission. He is against the PML-N 's agenda of prosperous Pakistan. blah! blah! blah!...

Arya | 9 years ago | Reply I suppose these middle eastern investors are pulling out there money after we told them we're not going to fight their wars.

smalee | 9 years ago | Reply AoA, We must not forget rating downgrade of local banks as well as the instability in Yemen which may lead to in involve our country.

Rizwan | 9 years ago | Reply That is correct big local corporates including the like of Nishat Mian Mansha are selling .

Zahir | 9 years ago | Reply Time for people in media to highlight the issue ! Serious credibility at stakes !

ML | 9 years ago | Reply The KSE index is heading for 20,000 or less. The money tap from so called foreign investors mainly from Dubai is under servellance after the top model got into the trap and landed in Adiyala. Also the earnings of Oil companies and banks will suffer a major blow in 2015. Next is real estate prices. Watch out.

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