Equity market declines by 507 points on selling pressure

KARACHI: The equity market declined by 507 points on Thursday due to selling pressure.

The benchmark KSE-100 index closed at 37,516 points as against 38,023 points showing a decline of 507 points.

Analysts at Arif Habib Limited said that the market took a nose-dive today with 100 index touching a low of 610 points and closed heavy red.

Selling was seen across the board amidst rumors of resignation of key government official and change of parliamentary form of government to Presidential format.

Initial start saw some positivity, however, selling pressure built throughout the day and stocks like Autos which performed well on the news of revocation of 10 percent FED on 1700cc and above vehicles couldn’t face the tide and eventually saw erosion of price gains made earlier.

UNITY rights (37.5 million) again contributed significantly to the traded volume 128 million, which was followed by Banks and Technology stocks.

Sectors contributing to the performance include Banks (-92 points), E&P (-72 points), Power (-66 points), Cement (-50 points), O&GMCs (-35 points).

Volumes declined from 153.3 million shares to 128.0 million shares (-17 percent DoD). Average traded value also declined by 9 percent to reach US$ 23.8 million as against US$ 26.3 million.

Stocks that contributed significantly to the volumes include UNITYR1, WTL, KEL, BOP and MLCF, which formed 56 percent of total volumes.

Stocks that contributed positively include MCB (+20 points), FFBL (+9 points), MEBL (+7 points), SRVI (+3 points), and APL (+3 points). Stocks that contributed negatively include HUBC (-53 points), UBL (-38 points), PPL (-25 points), HBL (-22 points) and ENGRO (-22 points).

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