LAHORE - Pakistan Stock Exchange nosedived on Tuesday, shedding over 800 points in the initial hours of the trading session, however recovering later to finally close down to 43,886 points, declining by 416 points at the end of the day.

This hysteria was due to massive losses posted by the US stocks tumbling markets across the globe on the back of rising bond yield. On the economic front, the World Bank signed loans worth $305 million with Pakistan. Moreover, Iran decided to take the IP gas pipeline project delay issue to the court. Traded volumes plunged by 16 percent DoD to 238 million shares while value traded fell to $77 million. Top volume stocks were ANL (6.5 percent), TRG (5.0 percent), LOTCHEM (2.4 percent) and SSGC (1.0 percent). Pressure was witnessed in all the sectors across the board. From the cement sector, PIOC (-3.5 percent), KOHC (-3.0 percent), LUCK (-2.6 percent), DGKC (-2.4 percent), MLCF (-1.1 percent) and CHCC (-0.7 percent) shed 80 points cumulatively and closed down in red. Moreover from the E&P sector, OGDC (-0.8 percent), PPL (-1.4 percent) and POL (-1.7 percent) closed in the red. Moving forward, experts expect market to remain volatile in the near term with flows from the local institutions and foreigners directing the market.

Experts said that the barometer KSE-100 of the PSX made a low of 44,498 points, down -1.8 percent, slipping below the important 44,000-point level, as investors panicked fearing outflow of foreign funds owing to global sell-off (Asian market were down in range of 1 percent to 6 percent). WTI sliding below $64/bbl further dented the investor sentiments. However, some value buying at day low led market to partially recover.

ANL was up 6.5 percent (25m shares exchanged hands), followed by TRG, up 5 percent (20m shares were traded) on back of loan restructuring new sand expectation of listing of its subsidiary companies in U.S respectively. Technology & chemical sectors drew investors as these sectors remained volume leaders with traded volume of ~30m for each sector.

They said that Asian stocks plunged after a record-breaking loss on Wall Street, extending a global rout as panicked investors fret over rising US borrowing costs and cash in profits after months of market euphoria. Tokyo led the collapse throughout the region, diving more than five percent, with Hong Kong down more than four percent and Sydney sinking three percent.

Other assets were also hammered, with a slump in oil prices scything energy firms, while higher yielding currencies have been hit by a flight to safe havens.