KARACHI
Traders have remained skeptic as the stock market has kept on performing abysmally since hitting a historic high of 53,127.24 in May. The event of upgradation into the Emerging Market Index could not meet expectations of the market participants. This was a major reason for the loss of points at the stock market. However, this alone has not pulled the index down 6.72% during the month.
Several factors have combined to create a dangerous phenomenon of uncertainty for stocks. The disturbed relationship amongst the Gulf countries has left questions over future of crude oil prices and also the import of LNG gas. Shortened trading hours due to Ramzan also had its part to play. But today’s sell-off could be highly related to the Supreme Court of Pakistan calling the Prime Minister to appear before a team investigating corruption allegations against his family.
With this news in hand, the benchmark KSE 100 index ended up being the worst performer around the globe. The index dropped to intraday low of 47,538.17 with a massive 4.18 per cent or 1,988.75 points loss. It settled 1,855.12 points deep in the red at 47,671.80. The KMI 30 index was pulled down by weak cement and E&P scripts and depreciated 4.68 per cent during the session. The KSE All Share Index was lower by 3.33 per cent. Only 32 scripts managed to inch higher while 339 drowned. 80 scripts ended at their lowest possible price for the day.
The market volumes remained at par with the trend of Ramzan and clocked at 219.36 million as right shares continued their dominance. Power Cement Limited (R ) (POWER -39.17%) was top traded with 26.35 million shares exchanged and The Bank of Punjab (R ) (BOPR -26.37%) followed with 15.95 million shares on the table.
Oil & Gas Development Company (OGDC -5.00%) could not be rescued even after notifying the exchange regarding new discovery. The notice read that the Joint Venture at Khewari Block compromising OGDC as operator (95%) and Government Holdings Private Limited (5%) has discovered gas from an Exploratory well Chabora # 01, which is located in District Khairpur, Sindh Province.
The PSX has been unpredictable at best, during the last month or so.
