LAHORE - After back to back down sessions, the Pakistan Stock Exchange saw a virtual bloodbath on Friday where the 100-share index went down by 1057 points in the second session. The first session was no different, ending at 746 points down from last day’s closing.

According to the analysts of Arif Habib company limited, besides IMF hinting a ‘do-more’ for Pakistan’s economic managers on efforts to stabilize economy and control twin deficits, investors saw another convincing reason in Shahbaz Sharif’s arrest to worry about. Nonetheless, aggressive buying activity was observed in some blue chips close to market close. Scrips of interest included DGKC, LUCK, UBL, SNGPL. OGDC fell significantly despite positive fundamentals and outlook, however, anticipation of an increase in local float caused the concern for some local investors, which resulted in negative price performance.

The index closed at 39,226 points as against 40,087pts the previous day, showing a decline of 861 pts (-2.1% DoD). Sectors contributing to the performance included banks (-161pts), E&P (-119pts), cement (-87pts), O&GMCs (-54pts), autos (-53pts). Volumes improved from 110.5m shares the other day to 153.5m shares (+39% DoD). Average traded value also increased by 29% to reach $43.4m as against $33.6m.

Stocks that contributed significantly to the volumes included WTL, BOP, PIBTL, TRG and LOTCHEM, reflecting 27% of total volumes.

Stocks that contributed positively included BAFL (+9pts), EFUG (+6pts), FFC (+4pts), APL (+4pts) and EFERT (+1pts). Whereas, scripts that contributed negatively included UBL (-62pts), OGDC (-52pts), PPL (-45pts), LUCK (-36pts) and PSO (-33pt).

Ahsan Mehanti, a stock market analyst, said that stock fell sharply lower on investor fears amid weekly fall in FX reserves by $627m and dismal earnings outlook after IMF end of mission statement calls for policy measures on further hike in gas and power tariff and significant external financing.

Dismal report of EIU hinting ongoing currency and inflationary pressures, OGRA notification for up to 143pc increase in natural gas tariff, and speculations on likely surge in interest rates and rupee depreciation played a catalyst role in bearish close.