KSE-100 index of Pakistan Stock Exchange (PSX) nosed down by over 1,000 points on Thursday on selling anxiety.
The KSE 100 index closed at 38,300 points as against 39,303 points showing a decline of 1002 points. Analysts at Arif Habib Limited said that today proves to be the second episode of MSCI rebalancing, where the selling pressure built through the day and reached its pinnacle in last half hour.
During the early of the session took the market down by around 550 points and out of that -300 points were contributed by PMPK, INDU, SAPL, JLICL, KHTC but later on further contributed by MTL and MARI. Significant selling was observed by session end in Cement, Banks, Technology took heavy bantering. Key stocks that affected the sentiment and hit large volumes were WTL, KEL, PAEL. Apparently, the market took cue from anticipated foreign selling flows which were meant for execution in last half hour and otherwise from the recent spate of rate hike and impending rupee devaluation that makes valuations unattractive.
Auction of t-bills and acceptance thereof after a long time also indicated that money market is quite comfortable with these rates and recently auctioned instruments will be traded easily in secondary market that again lowers the attractiveness of local equities. In addition, some mutual funds have also been facing redemption and request for conversion to money market vehicles from equity funds that made them sell since the beginning of the week. Sectors contributing to today’s performance include Banks (-290 points), E&P (-153 points), Fertilizer (-136 points), O&GMCs (-92 points), Cement (-57 points).