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    Monday, July 3, 2017

    Bloodbath at PSX: benchmark index sheds over 1,870 points during intraday trading

    The Pakistan Stock Exchange (PSX) saw a bloodbath Monday, as the benchmark KSE-100 Index shed 1,872 points in intraday trading.
    The benchmark plunged almost 4.02 per cent to touch the day's low at 44,693 points during the trading session.
    It was a one-way street, as the market's open at 46,565 remained the day's high.
    The banking sector led activity at the bourse, with over 18 million shares traded by noon.
    The KSE-100 index had recorded a moderate loss of 146.56 points or 0.31pc to close at 46,565 during the previous session.
    Senior analyst Ahsan Mehanti attributed the prevailing negativity in the market to uncertainty over the outcome of the Panamagate joint investigation team's (JIT) probe into the Sharif family.
    "Investors in the capital market are fearing that it (the decision on Panama Papers leaks investigations) might be against the ruling regime," he told Dawn.com.
    He was of the view that uncertainty will prevail over the market until July 10, which is when the JIT is expected to submit its report before the Supreme Court.
    Hamad Aslam, director and head of research at Elixir Securities Pakistan, also held that the JIT is the main factor behind the bearish activity.
    He was of the opinion that, on one hand, the market was experiencing a correction, whereas on the other, long-term smart investors were waiting for the market to settle down by July 10 so they could invest in mutual funds.
    "Usually, long term investors prefer to invest in mutual funds when the market is bearish, so I am confident that the market will take a u-turn around July 10 when the benchmark will be on an upward trajectory amid already lowered prices," he said.
    He was optimistic that Rs30 to 40 billion could be injected into the capital market within the next two weeks.
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    Item Reviewed: Bloodbath at PSX: benchmark index sheds over 1,870 points during intraday trading Rating: 5 Reviewed By: Abdul Sattar Qamar