Stock market falls by 785 points on FATF warnings

KARACHI: The stock market fell 785 points on Monday owing to decision of Financial Action Task Force (FATF) an its warning on compliance by February 2020.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,085 points as against 33,870 points showing a decline of 785 points.

Analysts at Arif Habib Limited said that the market took heavy bantering today on the basis of latest decision of FATF to keep Pakistan in grey list.

“Although, the market participants had same expectation, by and large, what took them by surprise was the intimation and warning tone by the FATF, in case this last extended deadline till February 2020 fails to meet objective,” they said.

Besides, beginning of rollover week has its own effect, which resulted in index losing around 800 points during the session and closing at -785 points.

Selling was observed across the board, with 273 scrips showing decline among actively traded stocks on all share index, 38 in Advance and 15 unchanged.

Banking sector led the volumes table with 19.3 million shares followed by Cement (18.1 million) and Chemical (15.1 million).

Among scrips, KEL registered highest volumes with 11.2 million shares, followed by LOTCHEM (9.8 million) and BOP (7.9 million).

Sectors contributing to the performance include Banks (-227 points), E&P (-107 points), Cement (-91 points), Power (-75 points), O&GMCs (-66 points).

Volumes increased from 115.2 million shares to 130.1 million shares (+13 percent DoD). Average traded value increased slightly from US$ 31.4 million to US$ 31.7 million (+1 percent DoD).

Stocks that contributed significantly to the volumes include KEL, LOTCHEM, BOP, FCCL and UNITY, which formed 33 percent of total volumes.

Stocks that contributed positively include NESTLE (+12 points), ATLH (+4 points), JICL (+4 points), SHFA (+3 points) and KTML (+2 points). Stocks that contributed negatively include HBL (-50 points), MCB (-49 points), LUCK (-47 points), HUBC (-46 points), and PPL (-42 points).

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