The Pakistan Stock Exchange (PSX) witnessed massive selling pressure on Monday as the benchmark KSE-100 index shed more than 1,500 points during intra-day trading.
The market began its slide soon after opening at 44,840.81 points, with the benchmark KSE-100 index down 1,543 points, or 3.44 percent, by 1:59pm. As per the PSX rule book, if the index goes 5 percent above or below its last close and stays there for five minutes, trading in all securities is halted for a specified period.
The benchmark index closed at 43,393.14, down 1,447.67 points, or 3.23 percent.
BMA Capital Executive Director Saad Hashemy cited four reasons behind the bloodbath at the PSX. They are; uncertainty on the economic front, negative rupee-dollar parity, lack of clarity regarding the IMF programme, Saudi trip and rising interest rates.
He said that despite the valuations being attractive for the market players, the negative sentiment may not be prolonged.
Hashemy said that in order to control the situation the government needs to lay out a concrete economic plan, moreover, a strategy needs to be devised regarding oil prices and controlling rising commodity prices.
Moreover, with talks with IMF to begin on May 18, the investors will look out for positive developments.
The investors also remained cautious as Morgan Stanley Capital International (MSCI) is expected to announce its Semi-Annual Review (SAIR) on May 12.
Shares of 363 companies were traded during the session. At the close of trading, 38 scrips closed in the green, 311 in the red, and 14 remained unchanged.
Overall trading volumes rose to 305.2 million shares compared with Friday’s tally of 305.20 million. The value of shares traded during the day was Rs9.23 billion.
Lotte Chemical Pakistan was the volume leader with 27 million shares traded, gaining Rs0.54 to close at Rs25.20. It was followed by Cnergyico PK Limited with 23.85 million shares traded, losing Rs0.55 to close at Rs5.56 and WorldCall Telecom Limited with 20.97 million shares traded, losing Rs0.11 to close at Rs1.57.