Karachi: Stocks continued to decline on Thursday, with the KSE-100 index giving up 181.70 points (0.51 per cent) to settle at 35,147.13.
Index heavy-weights Lucky Cement, United Bank and Engro Corp declined 2.7pc, 1.8pc and 1.1pc, respectively, contributing 78 points to the fall. Some market players thought that a correction was healthy after an unprecedented run-up of stock prices.
With economic and corporate fundamentals remaining unchanged, investors were expecting further rise in stock values as the results season was just around the corner with expectations of healthy earnings.
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Yet, several market watchers said that the China’s stock market meltdown sent investors scurrying to book profit lest the foreign selling erupted in the local market.
Although market participants tried to calm fears pointing out that Chinese market meltdown was in no way likely to impact the local equity market, investors feared a flight of foreigners. And the foreign sell-off worth $10.18 million exacerbated investor concerns.
Foreign selling was seen amounting to $4.1m in fertilisers; $2.8m in cements and $1.6m from the banking sector. Trading volume and value receded to 364m shares of Rs14.7 billion.
Major news flow included Pakistan’s foreign exchange reserves climbing to all-time high of $18.7bn and the government setting up a committee to review 0.6pc withholding tax on all banking transactions of non-fillers.
Analyst Umair Hasan observed that the market continued to be dominated by profit-taking.
In cement sector, DGKC, FCCL, LUCK and MLCF ended lower by 1.3pc, 0.1pc, 2.7pc and 1.8pc. Fertilisers remained under pressure as EFERT, ENGRO and FFC fell 1.7pc, 1.1pc and 0.2pc. Automobile sector remained bullish on anticipation of strong sale numbers.
