Share market plunges by 1077 points as energy scrips crash

Share market plunges by 1077 points as energy scrips crash

KARACHI: The share market plunged by 1,077 points on Tuesday as energy scrips saw lower circuit breakers following massive decline in international oil prices.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,422 points as against 33,500 points showing a decline of 1077 points.

Analysts at Arif Habib Limited said that the market opened in negative 478 points today and continued the descent throughout the session, which extended to negative 1077 points by the end of session.

Concerns raised by IMF over G20 debt relief, announced last week by the Government, as well as hinting higher than expected inflation with a caution over the Policy rate cut caused the market to panic.

In addition, onslaught on WTI and Brent prices in the international market kept the bears active in Oil & Gas scrips, which saw OGD, PPL, POL, PSO, HASCOL on lower circuit breakers by the end of session.

Banking sector stocks also adjusted downward by close. Cement sector saw an initial selling pressure, but rallied on the hint of Cement prices to be increased in the coming days.

Nonetheless, overall negative sentiment couldn’t save Cement sector stocks from selling pressure. Cement sector garnered 151.3 million shares in trading volumes, followed by O&GMCs (28.6 million) and Technology (21.4 million).

Among scrips, MLCF realized 39.6 million shares, followed by FCCL (35.5 million) and HASCOL (23 million).

Sectors contributing to the performance include E&P (-288 points), Fertilizer (-175 points), Power (-136 points), Banks (-124 points) and O&GMCs (-106 points).

Volumes declined from 399.9 million shares to 339.2 million shares (-15 percent DOD). Average traded value also declined by 12 percent to reach US$ 95.5 million as against US$ 106.2 million.

Stocks that contributed significantly to the volumes include MLCF, FCCL, HASCOL, DGKC and PIOC, which formed 41 percent of total volumes.

Stocks that contributed positively to the index include EFERT (+24 points), KOHC (+13 points), CHCC (+12 points), PAKT (+11 points) and BAHL (+11 points). Stocks that contributed negatively include ENGRO (-129 points), HUBC (-114 points), OGDC (-98 points), PPL (-94 points), and FFC (-62 points).