KSE-100 plunges over 840 points in intra-day trading

KARACHI: The stock market’s benchmark-100 share index tanked over 2.05% or 840 points in intra-day trading on Monday, retreating to a low of near 40,258.58 as politics dampened the mood of investors already sidelined over worrying economic indicators and possible rupee depreciation.

Mood at the bourse turned sour right after news came that Islamabad’s accountability court, where Ishaq Dar was supposed to show up for his trial in a corruption reference filed by the National Accountability Bureau (NAB), had issued bailable arrest warrants for the finance minister. The court rejected his counsel’s application that the minister fell ill in Jeddah and travelled to London for medical treatment, and therefore, be exempted from today’s hearing.

NAB reference: Bailable arrest warrants issued for Ishaq Dar

While the hearing was adjourned till November 2, reports of a senior-party huddle in London where the ruling PML-N is meeting as means to tactically regroup amid reports of infighting put investors at unease back in Pakistan. Panic selling was witnessed across the board as rising speculation and uncertainty over economic outlook and strategy continued.

The KSE-100 Index, which has been endured its worst year in terms of returns offered since 2008, was hovering around the 40,320-point mark – a fall from 41,105.41 – an hour before scheduled closing with majority of the stocks in the red as a result of heavy selling. Volumes on the all-share index were low, amounting to a little over 77 million shares by 2:25pm.

It didn’t help that earnings announcements of index-heavy companies disappointed investors who are also awaiting clarity on many fronts including future economic strategy that seems to have been put on the backburner as uncertainty over PML-N leadership increases.

The post KSE-100 plunges over 840 points in intra-day trading appeared first on The Express Tribune.

from The Express Tribune http://ift.tt/2gVtCku