KARACHI: Selling intensified on the stock market on Wednesday resulting in a steep drop in KSE-100 index by 228.90 points, or 0.66 per cent, to 34,203.99.
With most of the market fearing volatility ahead, investors decided to take profit and step aside. The other major factor that spooked investors was the resumption in foreign selling on Wednesday of stock worth $5.73 million, after net purchases the earlier day.
Among local participants, institutions stayed on the sidelines while mutual funds bought stocks valued at $4.20m and individuals also accumulated shares worth $2.13m.
The oil and gas sector came under renewed pressure due to dip in global oil prices. Although Mari Petroleum hit the ‘upper circuit’ and Shell Pakistan also managed to add 1.2pc to its value, remaining 11 stocks on the heavyweight oil and gas sector dipped in the red.
Investment analysts at brokerage Foundation Securities said that volumes were expected to take a breather as result season was near completion.
The resurgence in coal prices was likely to dent gross margins of cement companies, but since the peak demand season was ahead, it was likely to keep momentum strong