Stock market plummets to 2017 low
KARACHI – Stock market closed lower on Tuesday on investor concerns for economic uncertainty. The KSE 100-index closed at 37,919 points, 465 points down from Monday’s 38,384 points, brokers said.
Market yesterday witnessed its lowest closing of 2017 as investors preferred to sell stocks due to prevailing political uncertainty where political parties appear to be heading for street clashes, said dealer at Topline Securities.
Bears were seen trolling the market, which saw market dipping by more than 600 points, all courtesy of political distortion and absence of investors. Though valuations have been cheap and attractive, bulls are taking a back seat waiting for the storm to pass. General market sentiment is that of cautious pessimism that is more reflective of risk of unknown and threat to existing government. In such environment, all positive news trigger pertinent to stocks go in vain, stated report of Arif Habib brokerage.
Sectors contributing to decline include oil & gas, power, fertilizer and cement that saw despondency yesterday as well with the exception of banks that took a positive turn. Investors were generally seen optimistic taking bets on HBL and UBL.
Scrips that contributed positively included HBL that added 23 points, UBL 21 points, LUCK 14 points, COLG 9 points and PGF that added 7 points to the index respectively. Stocks that contributed negatively included DAWH 31 points, SNGP 27 points, HUBC 27points, KAPCO 25 points and MARI that detracted 24 points from the index respectively.
Volumes spiked back above 100m shares to reach 108.5m shares, as compared to 50m shares of the previous day (up 117% DoD). Average traded value also saw improvement of 78% DoD to reach USD 43.2m as compared to USD 24.3m Monday.
Stocks that contributed significantly to the volumes included WTL, KEL, TRG, PASL and DCL, contributing a total of 45.3m shares, reflecting 42% share of total volumes.