PSX as KSE-100 index plunges over 2500 points

KARACHI: The Pakistan Stock Exchange (PSX) took a hammering on Tuesday as the benchmark index fell over 2500 points as the bourse entered the “correction” phase.

At close, the benchmark KSE-100 settled at 59,171 level, a decrease of 2534.12 or 4.11%. This is the highest day-to-day fall in terms of points in KSE-100 history.

In keeping with the volatility witnessed at the PSX in recent weeks, the benchmark index has also dropped by 11% from its peak of 66,427 reached on December 12, which was only two weeks ago.

On Tuesday, there was widespread selling as index-heavy industries including automakers, chemicals, cement, commercial banks, oil and gas marketing, exploration, refineries, and pharmaceuticals all saw negative trading.

In addition, there was resentment over unverified rumors claiming that the International Monetary Fund (IMF) had rejected “non-cash adjustments” as a means of reducing the stock of circular debt.

A total of 670,859,618 shares valuing Rs.17.129 billion were traded during the day as compared to 671,550,776 shares valuing Rs.13.709 billion the last day.

Some 369 companies transacted their shares in the stock market; 43 of them recorded gains and 315 sustained losses, whereas the share prices of 11 remained unchanged.

The three top-trading companies were K-Electric Ltd with 97,358,482 shares at Rs.4.44 per share, WorldCall Telecom with 72,516,907 shares at Rs.1.36 per share and Bank of Punjab with 41,014,387 shares at Rs.5.72 per share.

Sapphire Fibres Mills witnessed a maximum increase of Rs.109.12 per share price, closing at Rs.1,566.00, whereas the runner-up was Ibrahim Fibres Limited with a Rs.23.45 rise in its per share price to Rs.363.90.

Unilever Pakistan Foods witnessed a maximum decrease of Rs.355.00 per share closing at Rs. 21,000.00, followed by Nestle Pakistan Limited with Rs.106.00 decline to close at Rs.7,800.00.