week ended on a sour note for the Karachi Stock Exchange (KSE) as the benchmark-100 tumbled 700 points on Friday.
Led by regional activity and declining prices of global crude, panic investors took the index down almost 1,000 points intra-day before some relief occurred in the second half. At one point, the KSE-100 touched 34,275 points.
However, at close on Friday, the index lost 699.8 points or 1.99% to end at 34,519.77.
Elixir Securities Analyst Faisal Bilwani said Pakistan equities tumbled as stocks rout in the region led to panic with benchmark breaching key support at 35,000.
“Mood that was already sour from foreign selling in the last few sessions darkened further as regional markets along with commodities tested new lows with KSE-100 index dipping near 1000 points intraday,” said Bilwani. “Reports of foreign selling and institutions struggling to find buyers led to panic selling while retail investors were also taken for a ride as volatility and sharp dips tested nerves.
“Understandably, value buyers at lows were not so aggressive, however, late buying did help market close with trimmed losses.”
Bilwani said next week was crucial. “Day’s trade data will be crucial to setting the tone early next week as a large outflow from foreigners would dent already bruised confidence. Moreover, investors will closely track regional markets and are expected to cherry pick value plays on further weakness.
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