KSE-100 endures worst day of 2018, plunges 1,290 points
KARACHI: The KSE-100 suffered its biggest intra-day fall of 2018 – both in terms of points and percentage – as uncertainty over outcome of the Avenfield Properties reference took toll on investor sentiment.
Panic selling meant the index plunged as much as 1,290 points, a retreat of 3.07%, in intra-day trading with major scrips across the board nearing or hitting their lower price limit.
By 1:40m, the KSE-100 was hovering around the 40,275-point mark amid low volumes and absence of any buying interest whatsoever. The index opened at 41,564.42 points.
The panic comes a day after the accountability court reserved its judgement on the Avenfield properties case, saying that the decision will be announced on July 6.
Market watch: KSE-100 falls 170 points on persistent political uncertainty
The reference is among those filed by the National Accountability Bureau (NAB) against former prime minister Nawaz Sharif and his children on orders given by the Supreme Court during the Panamagate case.
“Verdict (on the Avenfield reference) is making investors jittery,” Samiullah Tariq, head of research at Arif Habib Limited, told The Express Tribune. “Investors fear clashes and deteriorating law and order in the aftermath of the verdict.”
Market talk suggested that the outcome of the verdict is casting a shadow on events leading up to the general elections slated to be held on July 25.
Market watch: KSE-100 starts FY19 on negative note
With macroeconomic indicators worsening in an election year, analysts and followers predict a further weakening of Pakistan’s economic position. As rupee weakens and oil prices rise, triggering inflation, rising interest rates and subdued demand is likely to take toll on economic growth.
The KSE-100 – a benchmark for market performance – has already been on a downward trend in the past year ahead of the elections and amid political uncertainty. From its 2018 high of 46,637.62 on April 6, the index has plunged 13.61% in almost three months.
https://tribune.com.pk/story/1749550/2-kse-100-endures-worst-day-2018-plunges-1290-points/
KARACHI: The KSE-100 suffered its biggest intra-day fall of 2018 – both in terms of points and percentage – as uncertainty over outcome of the Avenfield Properties reference took toll on investor sentiment.
Panic selling meant the index plunged as much as 1,290 points, a retreat of 3.07%, in intra-day trading with major scrips across the board nearing or hitting their lower price limit.
By 1:40m, the KSE-100 was hovering around the 40,275-point mark amid low volumes and absence of any buying interest whatsoever. The index opened at 41,564.42 points.
The panic comes a day after the accountability court reserved its judgement on the Avenfield properties case, saying that the decision will be announced on July 6.
Market watch: KSE-100 falls 170 points on persistent political uncertainty
The reference is among those filed by the National Accountability Bureau (NAB) against former prime minister Nawaz Sharif and his children on orders given by the Supreme Court during the Panamagate case.
“Verdict (on the Avenfield reference) is making investors jittery,” Samiullah Tariq, head of research at Arif Habib Limited, told The Express Tribune. “Investors fear clashes and deteriorating law and order in the aftermath of the verdict.”
Market talk suggested that the outcome of the verdict is casting a shadow on events leading up to the general elections slated to be held on July 25.
Market watch: KSE-100 starts FY19 on negative note
With macroeconomic indicators worsening in an election year, analysts and followers predict a further weakening of Pakistan’s economic position. As rupee weakens and oil prices rise, triggering inflation, rising interest rates and subdued demand is likely to take toll on economic growth.
The KSE-100 – a benchmark for market performance – has already been on a downward trend in the past year ahead of the elections and amid political uncertainty. From its 2018 high of 46,637.62 on April 6, the index has plunged 13.61% in almost three months.
https://tribune.com.pk/story/1749550/2-kse-100-endures-worst-day-2018-plunges-1290-points/
