KARACHI: The KSE-100 index tumbled another 224.22 points, or 0.72 per cent, on Wednesday to close at 31,086.51 points, which was three-month low.
Buoyed by the possibility of government declaring some measures to stop the market slide in the top-companies awards ceremony held later in the day, the index in the initial hours clawed back 96 points, but with no apparent triggers and continuing foreign selling, stocks resumed the downward journey.
Overall, the index has shed 5.7pc in the last seven sessions, while it is down 10.7pc from its recent peak seen on Feb 3, 2015. Volumes also declined to a six-month low at 99m shares on Wednesday with trading value at Rs6.1 billion. Rollover of futures contracts also impacted market sentiments.
PAEL, with one of the highest open interest in futures, hit its ‘lower circuit’. “Investors are concerned on continuous selling by offshore investors, which is why no aggressive buying is coming at these levels despite the recent fall in interest rates,” said a senior analyst. Foreign portfolio outflow amounted to $1.07m.
Moody’s Investors Service on Wednesday revised the outlook on Pakistan’s foreign currency government bond rating to positive from stable.
Several market participants said that the brokers and investors were spooked after the regulator initiated strong measures.Zulqarnain Khan, Executive Director at Next Capital, thought that except for the oil and gas sector, corporates had turned out healthy financial results and the next trigger could be the upcoming quarterly results.
Many thought that the two major issues raised by the regulator with considerable impact on the market were the investigations into the ‘beneficial ownership of foreign investors’ and the stern warning to brokers to curb ‘in-house’ badla.