Index falls 286 points amid global meltdown

KARACHI: Stocks fell for the fourth successive session on Thursday. The KSE-100 index plunged 285.76 points to close at 32,682.50. The index shed 546 points in four days.

Dealers said that the weakening international oil prices coupled with China’s devaluation of the yuan rattled global markets.

The KSE-100 immediately lost 190 points soon after the opening bell, possibly as a reaction to suspension of trading in the China’s stock market after the CSI300 lost more than 7pc within its opening 30 minutes.

Traded volume improved by 35pc to 135.9 million shares and value increased by 32pc to Rs9.1 billion.

Foreigners made comparatively heavy sales of $6.59m worth stock.

POL closed at its lower-limit (down 5pc), while PPL and OGDC declined 4.5pc and 3.8pc.

Fertiliser stocks bore the brunt of a 5pc drop in international urea prices which declined to $228 a tonne. FATIMA, FFC and EFERT declined 0.6 to 1.2pc.

Pharma stocks topped the charts on the back of improved sales and earnings expectations going forward. Resultantly, FEROZ closed up 5pc and SEARL increased 4.9pc.

“We believe the market to remain dicey as slowdown in the Chinese economy and the yuan depreciation to four-year low will likely impact the global economy adversely,” said analysts at Global Securities.

Analyst Ahsan Mehanti commented that the trade remained thin. Worries for geopolitical tensions, rising circular debt in the energy sector and uncertainty over government privatisation plans played a catalyst role in bearish close.

Analysts at Intermarket Securities advised investors to avoid taking exposure in the market at this point in time.

Published in Dawn, January 8th, 2016