KARACHI: Blue-chip stocks’ prices faced considerable decline across the board on Monday, with the benchmark index touching 28,707 points, down 4% from the starting of the session, during intra-day trading.
The Karachi Stock Exchange (KSE)-100 index had lost 1,251 points by 1:44 PM largely on the back of huge selling by local enterprises as well as high net worth individuals (HNWIs), as stated by analysts.
“Many HNWIs received margin calls today after two weeks of consistent declines in the benchmark index,” one broker said, while speaking to media.
This was in addition to the selling by local mutual funds that had to meet their customers’ requests for deliverances, the broker further said.
The KSE-100 index has fallen 12.8% since March 13 when leading foreign funds resorted to massive divestments. Net outflows of foreign portfolio investments between March 13 and March 27 have been $46.6 million.
Huge selling was seen in almost all blue-chip stocks, including DG Khan Cement, Engro Corporation, Hascol, Hubo, Maple Leaf Cement, Nishat Chunian and PSO. Each of their shared prices dropped 5% each, turning out in a frost in trading during the session.
Share prices of 320 companies went down but the increase was recorded in only 14 stocks by 2:00PM.
Twitter Reactions on KSE NOSE DIVE points losing:
Today's loss at the Karachi Stock Exchange=Rs250 billion (what Pak Army spends in 9 months)
— farrukh saleem (@SaleemFarrukh) March 30, 2015
market down 1200 points today and nearly 6000 points from its peak a few weeks back! whats going on?why are foreigners consistently selling?
— Asad Umar (@Asad_Umar) March 30, 2015