Market watch: KSE-100 plunges over 1,200 points before minor recovery

MyCountry - My Country A Creative News Agency -
MyCountry - My Country A Creative News Agency -

KARACHI: Even before trading began, investors and traders knew it was going to be a tough day for the stock market.

Expectations were met as less than halfway into the session, the KSE-100 Index plunged over 1,000 points or almost 2.5% with market participants adopting a dump-and-run approach even as valuations reached attractive levels. It later hit an intra-day plunge of over 1,200 points as panic selling continued.

Index-heavy banking, cement and oil sectors were hit and all major scrips lost value. The Supreme Court’s order of summoning heads of three private banks in a case about suspicious transactions took its toll on market participants that saw further upheaval in the political sphere ahead of the elections on July 25.

UBL, one of the three banks, was nearing its lower price limit after having lost Rs7.33 or 4.5%. Summit Bank, also named in the order, shed close to 14% of its value in intra-day trading.

Market analysts say stocks will continue to remain under pressure in the near term as former prime minister Nawaz Sharif and his daughter return to the country after being handed jail sentences by an accountability court hearing the Avenfield properties reference.