KARACHI: Pakistan stock market kept hemorrhaging on the fifth successive day, falling another over 600 points to intra-day low below 30,344 points at 03:05pm.
The market maintained a downward trend due to aggressive sales by mutual funds. Investors in such funds wanted their money back after no improvement at the Pakistan Stock Exchange (PSX).
“The prime concern is mutual funds continuously receiving redemption calls from their investors,” said Arif Habib Limited Head of Equity Sales Saad Bin Ahmed in a comment to The Express Tribune.
PSX’s benchmark KSE-100 Index was down 543 points, or 1.75 per cent, at 30,457 points at 12:13pm on Wednesday.
The redemption calls agreed on such funds to sell stocks.
The other option given by investors to fund managers was to convert their investment from risky stock market to risk free instruments like fixed income funds.
Besides, foreign investors were aggressively selling some selected stocks in the banking sector, he said.
The escalation in regional tension over Kashmir between Pakistan and Indian added selling pressure at the PSX, he said.
“Technical analysts are now anticipating the market falling down to 25,000-28,000 points level” Ahmed added.
The market witnessed sales across the board. This pulled many stock prices down to the day’s lower limit of five per cent, or Rs1.