Investors dumped shares across the board as markets around the world slipped in response to growing unease over US debt crisis, they said.
“Some very big funds liquidated their holdings at KSE,” said Qasim Ali Shah, head of equities at Global Securities. “Around $15.3 million have been taken out by a Luxemburg-based fund and another $13.3 million by a US fund.”
Foreign investors made net sales of $4.4 million, taking the outflow to $33.7 million in the last few sessions in response to delays in US debt deal, which is needed before August 2 to raise Washington’s ability to take more loans for making payments.
Stock markets in many other developing countries have come under pressure as foreign funds shift their investments to safer assets like gold.
The KSE-30 Index of blue chip firms fell 185.32 points to 11,502.53 with investors ignoring the strength of dividend-yielding stocks amidst the panic, traders said.
Shares of 377 companies were traded, out of which only 64 gained, 190 ended lower, while 123 remained unchanged.
Overall volume rose slightly to 64 million shares.
Shah said that KSE-100 Index remains fragile with investors nervous about the 12,000-point psychological barrier.
“If the index goes below that then we might just see depression taking hold.”
Domestic political situation with souring relations between the government and the judiciary has contributed to the jitteriness of the market, analysts say.
Oil and Gas Development Company Limited (OGDCL), MCB Bank and Fauji Fertilizer dragged down the market.
Support did come from Lucky Cement, Byco Petroleum and National Refinery, but selling pressure remained throughout the day.
The pressure has built up at a time when listed firms are announcing the April-June quarter result, causing an expected decline in many big shares, analysts said.
“Shares of the blue chip companies have come down to attractive levels,” said Hasnain Asghar Ali, an analyst at Aziz Fidahusein. “But investors must take a calculative bet. There are too many problems right now.”
Hub Power was the most actively traded shares with volume of 6.8 million. It slid 1.24 percent to Rs39. Jahangir Siddiqui Company followed with trade in 4.3 million shares.
The scrip closed flat at Rs6.92. Fauji Fertilizer Company was down 2.47 percent to Rs157.22 on trade in 3.5 million shares.
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