Earnings were another key dampener, he noted, adding that headway on major policy moves initiated recently, such as circular debt resolution, talks with independent power producers (IPPs) and energy sector reforms, had failed to materialise as yet.
Muhammad Faizan Munshy, Head of Foreign Sales at Next Capital Limited, said most of the points lost were due to Shehbaz’s arrest. “The rest was just normal profit-taking,” he added.
Major market participants tried to calm the market which saw the index bounce back a little from the intra-day low of 1,056 points.
The data released by the National Clearing Company of Pakistan Limited in the evening did not show heavy exodus of foreign portfolio investment as the foreign sell-off remained at the daily average of $1.26 million.
Insurance companies, banks and other organisations with surplus cash considered it just the right time to buy when the blood was on the street. Mutual Funds were the major sellers of equity worth $5.35m.
Analysts at Arif Habib Limited said another reason for the stock decline was the previous week’s rollover session’s trickle-down impact on the first trading session, primarily due to low settlement ratios.
Volumes decreased from 435m shares to 407.2m shares (-6pc DoD). Traded value also declined by 7pc to reach $86.1m. O&GMCs, refinery, banks and cement sectors saw heavy selling pressure.
HBL (-3.6%), UBL (-2.5%), BAHL (-4.1%), MEBL (-1.8%), MCB (-1.4%) among banks and KOHC (-7.5%), MLCF (-6.7%), PIOC (-6.1%), DGKC (-4.9%) and CHCC (-4.0%) dented the Index.