Lahore  -   Carnage was witnessed at the local bourse as the KSE 100 index lost 1,002 points to close at 38,301 level on Thursday.

This pressure in the market was on the back of likely redemptions in mutual funds. MCB (-4.5 percent), PPL (-3.1 percent), ENGRO (-3.0 percent), HBL (-2.6 percent) and PSO (-4.7 percent) were among major laggards which dragged the index down by 299 points. Volumes improved by 37 percent DoD, standing at 190 million shares for the day as compared to 138 million shares traded in the previous day. KEL (-2.6 percent), PAEL (-4.3 percent) and LOTCHEM (-2.4 percent) led the volume with 36mn shares changing hands through the day. Banking space closed lower than its previous day close where big banks dropped 193 points to the declining index.

ABL (-5 percent), MCB, HBL, UBL (-1.9 percent) and NBP (-2.0 percent) closed in the red zone. Cement sector remained under the hammer where big players such as PIOC (-4.7 percent), CHCC (-2.6 percent), DGKC (-2.6 percent), FCCL (-2.1 percent) and LUCK (-2.1 percent) closed in the red zone. E&P sector closed in the red zone as crude oil prices edged lower in international market trading at $50.44/bbl. POL (-2.8 percent), PPL and OGDC (-1.9 percent) were the major losers. Moving forward we expect bearish sentiment in the market to continue on the back of political uncertainties and concerning economic indicators. Also, potential redemptions in Mutual Funds are likely to cause further selling pressure.

Experts said that equity market continued its downslide, with KSE 100 index falling by 1,002 points. The negative sentiments which are driving the market lower include likely economic slowdown and expected poor corporate earnings. Further, lack of any positive trigger kept investors’ on sideline.

Despite recent 150bps hike in policy rate, Commercial Bank was the worst performing sector (dragged 290 points) as investors continue to reduce exposure in the market due to negative sentiments. Oil and Gas Exploration and Production, Fertilizer and Oil Marketing Companies were the other poor performing sectors. Cumulatively the said 4 sectors dragged the index down by 672 points.

Investor participation declined today as traded volumes increased by 37 percent to 190mn, while traded value went up by 31 percent to US$65mn.