In line with most Asian stocks, the benchmark index of the Karachi Stock Exchange (KSE) plunged by over 1,000 points in intraday trading on Monday.
The KSE-100 Index stood at 32,965 points at 1pm after registering a decline of 2.73% since the beginning of trading at 9:30am.
Speaking to The Express Tribune, Shajar Capital Investment Analyst Hamza Kamal said a complete absence of triggers to drive the market has caused selling on the Karachi bourse.
“There is uncertainty in the market and the political situation is volatile,” Kamal said, while referring to the ongoing crackdown against white collar criminals in Karachi.
According to an equity trader working for another Karachi-based brokerage house, individual investors have been selling shares on the KSE after most Asian stock markets experienced a bearish trend on Monday.
“Individual investors are panicking and have trimmed their positions,” he said.
Prices of as many as 276 stocks have declined while those of 23 stocks have appreciated since morning, KSE data shows.
So far, 178 million shares have been traded on the bourse with the exchange value of Rs9.6 billion.
The KSE-100 Index shrank by 1.6% last week amid reports that the bearish trend in the market was partly because a few brokers had received notices from regulators over non-compliance of client segregation regulations.