KARACHI: The share market plunged by 1.53 percent on Monday due to spike in tension between Pakistan and India at Line of Control (LoC).
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,181 points as against 31,666 points showing a decline of 486 points.
Analysts at Topline Securities said that KSE-100 index lost 486 points/-1.53 percent in today’s session to close at 31,180.
The spike in tensions between two neighboring countries India & Pakistan at LOC (Line of control) was heightened as India has revoked article 370 in Kashmir valley through a presidential decree.
They said that investor sentiments remained negative due to hurdles faced by the much anticipated market support fund as government is facing issues due to IMF restriction on issuance of sovereign guarantee.
Analysts at Arif Habib Limited said that declining cement dispatches, Concerns raised by O&GMCs on RLNG intake and India’s amendment in its Parliament relating to Kashmir caused a major blow to Investor sentiment.
Resultantly, Banks, Power, Steel, Cement, E&P etc traded in red and contributed most to the downfall of Index. Overall volumes reached 52 million, led by Cement Sector. MLCF ranked highest on the volumes table with 4.8 million shares, followed by TRG (4.2 million) and ISL (3.5 million).
Sectors contributing to the performance include Banks (-195 points), E&P (-75 points), Power Generation (-52 points), Fertilizer (-42 points) and O&GMCs (-26 points).
Volumes increased from 46.5 million shares to 52.0 million shares (+12 percent DoD). Whereas, average traded value registered a decline of 12 percent DoD to reach US$ 11.3 million as against US$ 12.8 million.
Stocks that contributed significantly to the volumes include MLCF, TRG, ISL, BOP and KEL, which formed 34 percent of total volumes.
Stocks that contributed positively include NESTLE (+10 points), BAHL (+5 points), FATIMA (+4 points), ABL (+2 points) and ABOT (+2 points). Stocks that contributed negatively include UBL (-74 points), MCB (-41 points), HBL (-39 points), HUBC (-37 points) and PPL (-35 points).