KARACHI: The KSE-100 index came crashing down by 417.57 points, or 1.22 per cent, on Thursday to settle at 33,786.42.

It was the fourth consecutive day of  STOCK MARKET decline, attributed by brokers and analysts to foreign selling, political headwinds, the fag-end of the result season and the investors’ inclination to take profit from an overbought market.

The market got into a tight bear hug as trading progressed, so that the KSE-100 index lost as many as 710 points intra-day.

However, institutional buying at dips helped to calm the market, which recovered half way from its day’s low.

Several brokers and analysts stated that the equity sell-off has been triggered by the SECP directive to the brokers stipulating that from March 6, banks that do not meet certain rating would not be considered as settling banks.Foreign investors continued the selling spree, offloading stocks worth $2 million on Thursday. It took the month-to-date foreign portfolio outflow to $64.27m.

“Since around 80 brokers are dealing with the scrapped banks out of 130 active members, the market went into panic selling,” asserted one broker.

Muhammed Mobeen at brokerage JS Global stated that the bears dominated the market as selling was witnessed across the board. Within the banking sector MCB announced eps of Rs21.85 up 13pc YoY and dividend per share of Rs4, in line with expectations. HCAR touched its second consecutive upper circuit.

Analyst Ahsan Mehanti at Arif Habib Corp stated that uncertainty in global commodities and consolidation post earnings announcements played a catalyst role in bearish activity at KSE.

In oil and gas sector HASCOL, PSO, OGDC and PPL depreciated by 5pc, 1.28pc, 1.7pc and 1.33pc, respectively.

KARACHI: The KSE-100 index came crashing down by 417.57 points, or 1.22 per cent, on Thursday to settle at 33,786.42.

It was the fourth consecutive day of STOCK MARKET decline, attributed by brokers and analysts to foreign selling, political headwinds, the fag-end of the result season and the investors’ inclination to take profit from an overbought market.

The market got into a tight bear hug as trading progressed, so that the KSE-100 index lost as many as 710 points intra-day.

However, institutional buying at dips helped to calm the market, which recovered half way from its day’s low.

Several brokers and analysts stated that the equity sell-off has been triggered by the SECP directive to the brokers stipulating that from March 6, banks that do not meet certain rating would not be considered as settling banks.Foreign investors continued the selling spree, offloading stocks worth $2 million on Thursday. It took the month-to-date foreign portfolio outflow to $64.27m.

“Since around 80 brokers are dealing with the scrapped banks out of 130 active members, the market went into panic selling,” asserted one broker.

Muhammed Mobeen at brokerage JS Global stated that the bears dominated the market as selling was witnessed across the board. Within the banking sector MCB announced eps of Rs21.85 up 13pc YoY and dividend per share of Rs4, in line with expectations. HCAR touched its second consecutive upper circuit.

Analyst Ahsan Mehanti at Arif Habib Corp stated that uncertainty in global commodities and consolidation post earnings announcements played a catalyst role in bearish activity at KSE.

In oil and gas sector HASCOL, PSO, OGDC and PPL depreciated by 5pc, 1.28pc, 1.7pc and 1.33pc, respectively.

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