KARACHI

The Karachi Stock Exchange nosedive during intra-day trading on Monday as the benchmark KSE 100-Index declined 946.60 points or 2.79pc to settle at 32,944.48 points.

Bloodbath continued today at the bourse as rumours circulated of regulators serving notices and demanding explanations from various capital market participants. Margin calls too contributed towards negative sentiments today.

Cement and fertilizer sectors remained under pressure due to expectation of unchanged policy rate in the upcoming monetary policy as FCCL, MLCF, FFBL, EFERT closed down by 2.7pc, 5.0pc, 2.2pc and 3.5pc respectively. Oil sector remained depressed as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated as POL, OGDC, PPL closed down 2.3pc, 3.9pc and 5.0pc, respectively, observed analyst Arhum Ghous at JS Global.

Falling volume is also a concern for speculators. Volume on Friday touched 10 weeks low and today’s volume was 218m shares of Rs.10.6b ($102m) shares which is lower than average of 286m shares of value of Rs.13b ($130m) for this year, researchers at Topline Securities stated.

Continuous foreign selling also keeping inventors to build portfolios as foreigners remained net sellers of $164m YTD.

Inspite of stability in international oil prices, index heavy weight PPL, OGDC, and POL fell by 5pc, 4pc and 2pc respectively. Analyst Ahsan Mehanti said stocks witnessed record fall post major earning announcements at KSE on concerns for prevailing political uncertainty and volatile global stocks.

Dismal earnings announcements in the oil sector, ongoing protests for tax levies on non-filers banking activity and hit on corporate earnings by OGRA announcement for increase in local gas prices played a catalyst role in bearish sentiments at KSE despite upbeat CPI Inflation data for Aug’15 and speculations ahead of SBP policy announcements later this month.

Dealers said that after flight of foreign investment, local investors had also begun to withdraw their capital from the market.

Analysts at major brokerages largely attributed the bearish trend at the KSE to declines at other Asian markets and continuing political uncertainty in Pakistan.