The KSE-100 Index plunged close to 700 points in the final 60 minutes of trading, eventually settling 519 points lower on Tuesday, as investors acted on negative news and bearish sentiment at the Pakistan Stock Exchange (PSX).
A positive start to the day, which saw the index inch close to the 47,000 level, was erased by mid-day followed by panic selling in the final hour. Stocks suffered across the board with cement, technology, and refinery sectors bearing the most brunt.
At close on Tuesday, the KSE-100 Index finished with a fall of 519.36 points or 1.12%, and was left teetering at 46,008.85.
The drop comes a day after the State Bank of Pakistan (SBP) announced its policy rate for the next two months with the Monetary Policy Committee increasing the key interest rate by 25 basis points to 7.25%, the first hike in over two years.
However, reports of Tabish Gauhar tendering his resignation as Special Assistant to Prime Minister (SAPM) on Power and Petroleum acted as a catalyst.
“Moreover, investors also looked to the sidelines as they monitored a sell-off in international financial markets coupled with rising commodity prices,” said Topline Securities in its post market comment.
On Tuesday, sectors wiping the gains of KSE-100 Index included cement (99.85 points), and technology and communication (75.04 points).
Volume on the all-share index increased from 194.72 million on Monday to 325.88 million on Tuesday. The value of shares traded also increased significantly during the session, amounting to Rs12.32 billion from Rs8.08 billion on the previous day.
Telecard Limited was the volume leader with 28.12 million shares, followed by WorldCall Limited with 26.43 million shares, and TPL Corp Ltd 21.44 million shares.
Shares of 519 companies were traded on Tuesday, of which 103 registered an increase, 398 recorded a fall, while 18 remained unchanged.