Pakistan Stock Exchange after receiving a battering during the last four sessions continuously finally breathed a sigh of relief today. The decline caused by the heavy foreign selling from foreign funds sent a wave of panic into the market prompting local and foreign investors to unload.
The market opened today continuing on yesterday’s freefall. The index during the first few hours dipped by 1200 points, bringing the tally of total losses to 4800 points.
But later it reversed the losses as it gained an upward trajectory in the afterhours of trading session.
The foreign fund houses since the beginning of the week have been net sellers contrary to expectations. Wednesday, on the eve of Pakistan Stock Exchange inclusion in to the MSCI –EM index, market saw foreign investors changing hands on shares worth 987 million dollars.
But as the index was down by almost eight percent, it created room for seasoned investors to reenter the market. Several companies belonging to cement, textile, oil and gas companies have lost more than 15 percent, giving ample cushion to reignite buying in local stock market.
The investors had anticipated a correction, but they were shocked by the timing of correction and the intensity of it.
Market’s performance yesterday shocked all industry experts who were hoping an increase in Market Cap by foreign investors on the eve of MSCI Inclusion but instead witnessed a bloodbath with 90% of scrips ending the session in red.
