KARACHI -  A strong wave of bearish assault jolted the stock market on Thursday due to which the PSX benchmark shares index witnessed massive decline of 1810.76 points or (down 3.58pc) to close at the level of 48,780.81 points.

The index lost around 4,087 points during this week. Today marked the first day of Pakistan’s re-entry to the Emerging Market stage, who would have thought it would bring about the single largest points decline of 1,811 points in the history of the bourse. Relentless selling spilled over from yesterday, with participants opening the flood gates in wake of net FIPI outflow of $82 million yesterday against expectation of net inflows, stated analyst Adnan Sami Sheikh at Topline Securities.

Top 10 index point losers were HBL (slip 4pc), UBL (4.8pc), OGDC (4.7pc), LUCK (4.7pc), HUBC (4.1pc), ENGRO (3.8pc), MCB (4.2pc), PPL (4.2pc), DGKC (-4.6pc) & PSO (4.4pc), taking away 876 points from the index. “Though yesterday’s gross buying activity ($452mn) was inline with our expectations, it was overwhelmed by gross selling of $534 million. Further, given that the inclusion day turned out to be completely contrary to expectations in terms of foreign flows and market performance, it’s safe to assume that all participants sold heavily as the market clocked a low of 4.6pc/-2,230 points,” the analyst added.

Panic selling continued amid concerns over unexpected foreign outflows after MSCI EM upgrade and pressure in global crude prices on supply glut risks. Stocks fell across the board as investors eye capital gains taxes higher slab levies, higher divided taxes next month inviting profit booking leading to record fall at PSX, analyst Ahsan Mehanti said. This pressure in the market was on the back of MSCI EM rebalancing and likely redemptions in mutual funds, observed analyst Arhum Ghous.

Banking sector led the decline as the sector lost to close (3.84pc) lower than previous trading session. On the other hand, CPI numbers clocked in at 5.02 percent for the month of May 2017. Selling pressure was witnessed in the E&P sector where POL (slump 3.49pc), PPL (4.21pc) and OGDC (4.69pc) lost value to close in red. Cement sector continued its previous trend as the sector lost value to close (3.31pc) lower than its previous day. Furthermore, heavyweights such as LUCK (decline 4.67pc), DGKC (4.63pc) and CHCC (2.73pc) also closed in the red zone.

Participation somewhat sustained yesterdays volumes at 403 million shares while traded value fell sharply by 48 percent to $262 million. Traded value of 6 MSCI-EM stocks was $129 million in regular market. KEL was today's volume leader as almost 50 million shares of the power generation company exchanged hands.