Market watch: KSE-100 index dives 1,002 points, falls below 39,000
KARACHI: Bears continued to dominate as they led the index to plunge over 1,000 points – falling far below the 39,000 level.
The negative sentiments came on the back of deteriorating macroeconomic conditions, which caused jittery investors to resort to profit-taking. After a brief open in the positive, the KSE-100 index tumbled to hit an intra-day low of 38,247 points as selling pressure continued to drive the index lower. Additionally, the uncertainty regarding the government’s economic policies also dented sentiments.
At the end of trading on Thursday, the benchmark KSE 100-share Index recorded a decrease of 1,002.48 points or 2.55% to settle at 38,300.63.
“The market is down due to macroeconomic uncertainty,” Arif Habib Limited Head of Research Samiullah Tariq told The Express Tribune.
Market watch: KSE-100 recovers from around 900-point plunge, still ends lower
Pakistan’s depleting capability to make import payment and debt repayment and still out-of-control current account deficit remain some big challenges in the economy. He said, “The situation is bad for stock market health.”
“High inflation and peaking interest rate would keep the market under pressure till the end of March 2019,” Tariq anticipated.
“Authorities are believed to contain the current account deficit, apply brakes on accelerated inflation and reset interest rate at peak by March 2019,” he said.
Settlement of the macroeconomic indicators by that time would pave the way for the market to bounce back from there onward, he said.
He hoped the market would continue to move around the 38,000-point level in short-to-medium run.
Market watch: Bull-run returns at PSX as index rises 442 points
“Auto and cement stocks may remain under selling pressure, while bank, fertiliser, exploration and production and oil stocks may invite renewed buying going forward,” he said. Tariq anticipated the economy would be back on the track of progress.
Overall, trading volumes increased to 189.8 million shares compared with Tuesday’s tally of 138.1 million. The value of shares traded during the day was Rs8.98 billion.
Shares of 358 companies were traded. At the end of the day, 80 stocks closed higher, 262 declined and 16 remained unchanged.
WorldCall Telecom was the volume leader with 20.7 million shares, losing Rs0.08 to close at Rs1.58. It was followed by K-Electric with 15.5 million shares, losing Rs0.14 to close at Rs5.18 and Pak Elektron with 10.6 million shares, gaining Rs1.13 to close at Rs24.90.
Benchmark index decreases 3.3% to settle at 39,160.60
Market watch: Bourse sheds 143 points in wake of rupee depreciationBenchmark index decreases 0.35% to settle at 40,496.03
Market watch: Trading remains lacklustre as investors await interest rate decisionBenchmark index decreases 65.97 points to settle at 40,638.83
Original news : https://tribune.com.pk/story/1861534/2-market-watch-kse-100-index-dives-1002-points-falls-39000/