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Stocks battered as index plummets 846 points in intra-day trading

Discussion in 'Pakistan Economy' started by ni8mare, Oct 12, 2018.

  1. ni8mare

    ni8mare SENIOR MEMBER

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    Stocks battered as index plummets 846 points in intra-day trading
    By Salman Siddiqui
    Published: October 12, 2018
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    A man looks at Pakistan stock exchange rates on a digital screen on October 9, 2018. PHOTO:ONLINE

    KARACHI: Stocks were hammered on Friday as the KSE-100 index plunged 846 points in intra-day trading, slipping below the 37,600 mark. Participants reacted to the sharp dip in the foreign exchange reserves held by the central bank, which had slipped by $101 million to settle at $8.3 billion.

    IMF cautions Pakistan against increasing Chinese involvement in economy

    The foreign exchange reserves have been on a downward path for seven successive weeks.

    The KSE-100 index, a benchmark for market performance, was down 846.23 points or 2.20% hovering at 37,552.07 before the market took a mid-day break.

    Commenting on the situation, Arif Habib Limited Head of Research Saad bin Ahmed told The Express Tribune, “Foreign selling on specific counters is of course a leading reason behind the current downturn.”

    Besides, local financial institutions are also seen offloading a part of their holdings across the board.

    He said that heavy selling by foreign and local financial institutions was seen mainly in auto, banks and cement stocks.

    “They are in the phase of resetting their portfolios on negative economic outlook for two years,” Ahmed added.

    IMF mission to arrive in coming weeks for bailout talks

    In an earlier development, Pakistan has also formally approached the International Monetary Fund (IMF) for a bailout. IMF Managing Director Christine Lagarde announced on Thursday that she would send a mission to Pakistan for bailout negotiations amid emphasis on full disclosure of the debt Pakistan has acquired including from China.

    The analyst pointed out, “Every one is foreseeing rebound in the market any moment. But at the same time everyone is selling as well to repurchase stocks at lower levels.”

    The confusion on IMF bailout as to the amount of loan Pakistan has applied for has also remained a confusion in the market.

    Earlier, there were talks that Pakistan would apply for $8-12 billion in bailout. Now market talks suggest the amount would be around $6-7 billion.

    “If Pakistan receives low amount in bailout, the problem of current account balances may remain there in the medium run.”


    Read more: bailout , IMF , KSE
     
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  2. Skull and Bones

    Skull and Bones ELITE MEMBER

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    Market will readjust itself with the current economic crisis, and investors finding confidence in overseas market and currencies or gold.
     
  3. Śakra

    Śakra SENIOR MEMBER

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    PSX has a market cap of $85 billion it honestly doesn't matter if it goes up or down it's too tiny to affect anything (domestic or internationally speaking)