PSX plunges 824 points as bears return to stock market

KARACHI: The KSE 100 index at the Pakistan Stock Exchange plummeted an astounding 824.70 points during intra-day trading closing in at 40,008.29 points.

The bourse reached its highest level of 40,832.99 points and lowest point even below the 40,000 level reaching 39,937.78 points. The indices eventually settled after a decrease of 824.70 (-2.06%) before trading was suspended. The total volume of script was 104.287 million valued at Rs5.69 billion.

Meanwhile, KSE 30 index also plunged showing a decline of 388.86 (-2.08%) points to showing at 18,267.62 points. The total volume of scripts was Rs57.91 million. The bourse opened at 18,267.45 points and eventually settled before market closure.

The top active stocks were also in the red except DG Khan Cement (0.89%).  World Call (-5.47%), Hascol (-9.49%), Unity Food (-5.54%), Fauji Foods (-6.76%),  Fauji Cement (-0.19%) and K-Electric (-2.91) also saw a decline in share prices.

The previous weeks saw a bearish outlook after a seven week winning streak at the stock market. The market closed in the negative on the weekend to 40,833 points. The stock market witnessed a seven week winning streak before bears return last week.

The market has also been affect by economic and political development notably the verdict against former army chief General retired Pervez Musharraf. The prospect of a possible confrontation between state institutions affect the stock market stopped the bulls on the trick and bears took over.

The International Monetary Fund (IMF) executive board has reviewed Pakistan’s economic performance before a new tranche worth $452 million. Finance adviser Hafeez Shaikh reported that current account deficit for November lowered by 73 percent to $1.8 billion. The foreign exchange reserves at the State Bank of Pakistan also increased to an eight-month high of $10.9 billion.