Daily Times

KARACHI: The KSE-100 Index at Pakistan Stock Exchange (PSX) dipped by 680.00 points on Wednesday to close merely above the psychological level of 43000 points. The index fell by 1.56 percent and leveled at 43,002.83 points.

Market opened little positive and drifted lower as the session progressed, however the last hours saw a bloodbath as notable sectors were hammered on reported institutional selling.

Financials took the lead in declines as the sector fell 2.7 percent during the day, with Habib Bank Limited (HBL) losing 3.5 percent alone contributed 96 points to the Benchmark Index fall.

Investors continued to remain worried about persistent selling by foreign institutions, upcoming FATF decision on Pakistan, uncertainty over macro-economics and lack of near term positive triggers.

“We see equities remaining weak in the near-term with Chartists now eyeing 42,300/200 as important support levels”, said equity analyst at Elixir Securities, Muhammad Arbash.

According to Ismail Iqbal Securities’ equity analyst, jitters related to the continuous slide of Pakistani Rupee against US Dollar, politics, and Pakistan’s external position resulted in losses. Moreover, investors were worried about FATF’s meeting next week that would decide whether or not Pakistan will be placed on watch-list.

Massive selling in bourse was triggered by foreign investors which have been net sellers in bourse from year to date. Foreign investors have sold stocks worth $ 93.78 million from the beginning of the year. This exodus activity of foreign investors from bourse has weakened the investors’ sentiments and foreign portfolio investment is considered apparatus of confidence in the stock market, said analyst at Aba Ali Habib Securities.

Amreli Steel Mills Limited (ASTL) losing 3.99 percent declined along with other steel companies even as it raised prices by Rs 4,000/MT.

K-Electric gaining 2.55 percent, on the other hand was able to escape the overall negative sentiment in the market due to news that National Electric Power Regulatory Authority (NEPRA) approved its request to use RLNG as alternative fuel.

Published in Daily Times, June 21^st 2018.