Stocks came crashing down on Tuesday with the KSE-100 index sinking deeper and deeper all through the day to close with loss of 813.82 points or 2.57pc at 30,876.28. Foreign funds outflow on Tuesday amounted to $0.66m.
Most investors were taken aback by the sudden plunge in stock prices. “In absolute terms, 813-point fall was not seen since Aug 2014 when market declined 1,309 points,” said analysts at Topline Securities.
The brokerage attributed it to global stock market rout. “While weak oil prices have led to uncertainty over global economic growth, more than 5pc drop in China’s benchmark Shanghai Composite Index last week triggered mega sell-off in global stock markets,” said the Topline analysts.
They added that the Foreign Investors Portfolio Investments (FIPI) net sell of $32m in last seven trading sessions signalled that Pakistan market was following global market trend. Several other brokers and analysts agreed that the steep decline in oil prices was the major culprit.
Market also believed that the terrorist attack on a Peshawar school had dampened investor sentiments. Volume for the day was 263m shares, higher than earlier day’s 216m shares.
