Stock market plunges by 816 points on IMF loan agreement

KARACHI: The stock exchange plunged by 816 points on Monday on report of finalization of loan program with IMF.

The benchmark KSE-100 index closed at 33,900 points as against 34,717 points showing a decline of 816 points.

Analysts at Arif Habib Limited said that index saw a major draw down of 937 points, post Pakistan entering IMF program.

The sessions commenced on a positive note and market at first increased by 511 points before plunging ~1400 points.

Last half hour of trading showed some buying activity that resulted in an unadjusted closing of -784 points.

Stocks, all and sundry, became target of Investors’ wrath. Besides conclusion of IMF program, the market was also faced with MSCI Review that had negative implications for stocks that form part of MSCI EM Index.

Several stocks hit lower circuit, important among those included SSGC, MLCF, PIOC, DGKC, GHNI etc. Banking sector remained unscathed in relative terms and scrips like MCB, HBL, UBL, MEBL traded in green zone.

Sectors contributing to the performance include E&P (-159 points), Fertilizer (-157 points), Banks (-93 points), O&GMCs (-69 points) and Cement (-68 points).

Volumes increased significantly from 39.3 million shares to 121.2 million shares (+209 percent DoD). Average traded value also increased by 202 percent DoD to reach US$ 37.5 million as against US$ 12.4 million.

Stocks that contributed significantly to the volumes include KEL, MLCF, BOP, PIBTL, and UNITY, which formed 29 percent of total volumes.

Stocks that contributed positively include MCB (+18 points), HUBC (+12 points), NATF (+3 points), SYS (+3 points) and SRVI (+1pt). Stocks that contributed negatively include FFC (-73 points), OGDC (-51 points), POL (-47 points), ENGRO (-36 points) and PPL (-36 points).

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