KARACHI: Stocks tumbled across-the-board at the PSX on Friday extending the marginal loss suffered a day ago. The KSE-100 index went into tailspin right from the start and closed with loss of 473.38 points (1.27 per cent) at 36,940.88.
Several analysts admitted that the twist to the market trend which saw the index recede below the 37,000-level on Friday came as a surprise for they had expected a range-bound activity until the announcement of decision on MSCI reclassification on 14th. “As the D-day approaches, some investors got cold feet and thought it prudent to book gains at current levels,” said a market participant.
Dealers at Topline Securities explained that the stocks fell due to lack of triggers, while some other analysts believed turmoil in global equities and crude prices as the reasons for shares slump.
Volume declined to 109m shares on Friday, from 140m shares while trading value improved to Rs7bn, from Rs6.8bn a day ago. KESC and PIBT accounted for 21pc of the day’s volume. Foreign investors sold off equity worth $3.05m on Friday, taking the year-to-date outflow at 36.37m. However, inflows during the current month amounted to twice that level at Rs78.71m.
“Significant drag was witnessed in names likely to be retreated post MSCI upgrade with ENGRO, HUBC, OGDC, UBL, MCB, HBL, LUCK, PSO and FFC taking away 298 points while on the flip side FML, NRL, BATA, RMPL and MTL eked out marginal gains of 87 points cumulatively out of which FML alone contributed 72 points,” said analysts at Intermarket Securities.
Analyst Ahsan Mehanti at Arif Habib Corp said that foreign outflows, dismal exports data for July-April 2016, consolidation in the post-budget season and concerns for federal budget tax levies on the corporate sector played a catalyst role in the sharp fall at PSX.