Daily Times

KARACHI: It was bears’ day at the Pakistan stock market on Tuesday where history of largest downfall was again made following JIT report submitted before Supreme Court on Monday. The benchmark KSE 100 index tanked 4.65%, largest decline since February 25,2009, or 2,153 points, largest ever point decline, to settle down at 44120.58 level.

Analysts recommend caution in the present circumstances where media war in favor or against Sharif family is heating up and everyone interprets the findings of JIT according their own personal interests. “Going forward caution is recommended as market will likely be media driven”, Topline Securities cautioned.

On Monday the stock market had witnessed strong rally in response to a report about JIT’s findings which said that the Prime minister has been exonerated by the JIT which resulted in the surge of 1,052 points.

However, on Tuesday equities witnessed a bloodbath as political noise reached a new decibel and benchmark KSE100 Index plunged by as much as 4.63%, down most since February 2009 when interestingly Sharif brothers were declared ineligible by Supreme Court to contest elections or hold public offices.

“Market opened gap down and traded deep in red throughout the day as investors, after digesting the details overnight of Investigator’s report submitted to Supreme Court yesterday in case against PM Nawaz Sharif and his family, became skeptical of the stability of current political setup”, said report by Elixir Securities.

Just Two stocks on benchmark KSE100 Index defied the bearish trend and traded positive, Five remained unchanged while 92 names closed in red out of which 62 closed at their respective lower price limits. Interestingly, no major change was witnessed on foreign exchange market with Rupee steady against dollar while yields also didn’t see any sharp moves on Tuesday.

Top 10 Index point decliners were HBL (-5%), UBL (-5%), LUCK (-5%), ENGRO (-5%), OGDC (-5%), HUBC (-5%), PPL (-5%), MCB (-4.9%), FFC (-4.8%) & DGKC (-5%); withholding 930 points, while only DCR and COLG within the 100 index managed closed in the green.

JIT’s revelations spooked investors. Volumes fell 21% to 185.2 million shares, while traded value shed 23% to Rs9.9bn/$94 million.

Foreigners took cue from the Rothschild’s playbook “Buy when there’s blood in the streets”, lapping up $11.5 million of Pak equity.QSOn volume leaders chart K-Electric with 17 million shares traded at the bourse followed by TRG Pakistan 9 million, Aisha Steel Mill 9million, Bank of Punjab 9 million, Engro Polymer 6 million and Summit Bank 5 million.

Published in Daily Times, July 12^th , 2017.