Share market plunges by around 1000 points on rising political uncertainty

Share market plunges by around 1000 points on rising political uncertainty

KARACHI: The share market fell by around 1,000 points on Monday due to increase in headline inflation and rising uncertainty on political front.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,072 points as against 40,070 points showing a decline of 998 points.

Analysts at Arif Habib Limited said that the market lost another 1206 points during the session, especially in the last half hour of trading.

Over the weekend, release of CPI data hinted an increase in Policy rate as the negative real interests have increased post increase in CPI.

Political uncertainty, on the other hand, has also caused panic amongst Investors.

Gradual redemptions from Mutual Fund investors have so far resulted in market meltdown, however, non-blue chip stocks as well as off-board scrips have sustained heavy losses in terms of drop in prices as compared to blue chip stocks from their recent highs.

Selling activity was observed almost across the board, with major contribution from E&P, Banks, O&GMCs sectors. Amongst scrips, HASCOL topped the volumes with 60.4 million shares, followed by UNITY (31.9 million) and KEL (29.1 million).

Sectors contributing to the performance include Banks (-130 points), Power (-113 points), Fertilizer (-111 points), E&P (-103 points) and O&GMCs (-71 points).

Volumes increased from 348.6 million shares to 409.9 million shares (+18 percent DoD). Average traded value also declined by 1 percent to reach US$ 76.5 million as against US$ 75.6 million.

Stocks that contributed significantly to the volumes include HASCOL, UNITY, KEL, TRG and PIBTL, which formed 39 percent of total volumes.

Stocks that contributed positively to the index include DAWH (+8 points), GHGL (+4 points), KOHC (+1 points), FML (+1 points) and ATLH (+0 points). Stocks that contributed negatively include HUBC (-74 points), ENGRO (-56 points), PPL (-50 points), TRG (-36 points) and COLG (-32 points).