China-led uncertainty over the global economic growth and falling oil prices triggered panic selling on Pakistan Stock Exchange (PSX), which tumbled the index by 2.22 percent. The trading week's second last session saw regional equities suffering losses because of negative data on the economic growth of China, world's leading consumer of commodities and oil.
Another drag for sentiment-driven PSX was the US West Texas Intermediate (WTI) crude oil which in intraday trade at New York Mercantile Exchange was seen ebbing to $29.9 a barrel, a level last seen about 12 years ago in December 2003. This hit the index-heavyweight oil scrips on local stocks market where Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), weighing 16 and 8.7 percent on the capital-weighted KSE-100 index, fell to six-year low.
Above average shares trading, 8.94 million, the analysts said was seen in OGCL which braved the rare selling pressure. This Topline analysts said was because of record low crude international crude prices. Overall, the KSE-100 index shed 713 points to close at 31,441 from Wednesday's 32,154.17, which proved to be the session high. Traded volume rose to 190 million shares valuing up to Rs 9.74 billion. Of the 357 issues traded only 40 posted gains, 299 lost their worth and that of 18 ended unchanged.
The market cap contracted to Rs 6.64 trillion from Rs 6.78 trillion of last session. Trade in futures contracts was recorded surging to 31 million. K-Electric topped the list of 10 top performing stocks, which included OGDC, Pak Elektron, Bank of Punjab, Fauji Cement, TRG Pakistan, Fatima Fertiliser, Byco Petroleum, Pace Pakistan and Dewan Cement. Encouraging was the behaviour of foreign investors who ended the volatile day with $148,837 net buying. This took the week's net inflows to $5.47 million. "Panic selling was witnessed at PSX amid higher trades after major sell-off in global equities and slump in WTI crude prices below $31/barrel," viewed Ahsan Mehanti of Arif Habib Corp.
Dismal sales data in fertiliser sector for Jul-Dec'15, weakening economic data on exports, concerns for political instability and gloomy earnings outlook, he said, played a catalytic role in major decline in the earnings season. In a research note, Topline analysts said regional markets tumbled on mounting worries about global economy. "This coupled with unconfirmed reports of a few brokers getting letters from agencies hurt local market sentiment," they said.