Equity market plunges by 342 points on negative sentiments

Equity market plunges by 342 points on negative sentiments

KARACHI: The equity market plunged by 342 points on Wednesday owing to negative trading sentiments.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,272 percent as against 39,614 percent showing a decline of 342 percent.

Analysts at Arif Habib Limited said that KSE100 index changed colors each day since the start of the week.

“Today it ended in red color. Among the major contributors to negative sentiment were E&P and Banking sectors, however, volumes were led by Power, Banks and Chemical,” they said.

Profit booking seems to be the mantra for local investors, which was apparently matched by selling activity from foreigners.

KEL dipped slightly, but maintained the rates relative to previous sessions.

The news of National Security Clearance seems to gain Investors’ confidence, which remained at a low ebb.

Selling was observed across the board and index dipped by 389 percent during the session, ending close to day’s low.

Sectors contributing to the performance include E&P (-94 percent), Banks (-65 percent), Fertilizer (-55 percent), Cement (-52 percent), O&GMCs (-25 percent).

Volumes slumped to 92.7 million shares from 122.2 million shares (-24 percent DoD). Average traded value also declined by 35 percent to reach $ 33 million as against $ 50.5 million.

Stocks that contributed significantly to the volumes include KEL, BOP, PAEL, PIBTL and TRG, which formed 42 percent of total volumes.

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