All hell broke loose at the Pakistan Stock exchange (PSX) on Wednesday, as the benchmark Karachi Stock Exchange KSE-100 index lost over 1,200 points in intra-day trading, which sent shockwaves among the panicky investors.
However, the index posted a modest recovery ahead of the closing bell as it clocked at 45,597.24 level, with a trimmed loss of 412 points.
The Index traded in a range of 1243.72 points, showing an intraday high of 46,031.89 and a low of 44,788.17. Beginning the trading on a negative note right after the opening bell, the index sank below the 45,000-point barrier by midday. However, the index reversed its trajectory, since the investors began cherry-picking stocks that had dropped to attractive valuations, which allowed the index to pare some significant losses incurred during the earlier trading.
Investors’ sentiments continued to dampen over State Bank of Pakistan’s (SBP) recent policy decision to increase the interest rate by 24 bps to 7.25pc- which is indicative of a step towards monetary tightening.
Moreover, Arif Habib in its closing report stated that the “Leveraged positions of retail investors played havoc in the market, which received margin calls after a continuous decline in the index for the past couple of sessions.”
Market Capital decreased by Rs.65.14 billion, while the value traded increased by 5.01 billion to Rs.17.33 billion.
The volume at KSE-100 clocked in at 227.49 million shares, while the all-share index volumes jumped to 583.7 million shares compared with Tuesday’s tally of 325.9 million shares.
The volume chart was led by Worldcall Telecom Limited, Azgard Nine Limited, Telecard Limited, Hum Network, Byco petroleum and Telecard limited.
The scrips exchanged $92million, $36 million, $34 million, $33 million, and $26.76 million.
Sectors which dented the index were Technology & Communication with 77 points, Oil & Gas Exploration Companies with 40 points, Textile Composite with 38 points, Fertilizer with 35 points and Refinery with 33 points.
Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 38 points followed by Systems Limited with 38 points, Habib Bank Limited with 25 points, United Bank Limited with 20 points and Cherat Cement Company Ltd with 16 points.
However, sectors which lifted up the index were Engineering with 6 points and Glass & Ceramics with 1 point.
Among the scrips, the most points added to the index was by Meezan Bank Limited which contributed 26 points followed by Muslim Commercial Bank with 11 points, Sui North Gas Pipeline Limited with 9 points, Fauji Cement Company Limited with 9 points and Bank Al Habib Limited with 7 points.
