KARACHI: Stocks bled on Thursday as the KSE-100 dropped below the 41,000 point mark by more than 1,100 points in intra-day trading.
The pummel came following rising tensions at the Pakistan-India border which dampened investor sentiments.
Moreover, the death penalty imposed on former president Pervez Musharraf by the special court further dented the situation.
Research houses were anticipating a market correction as it had reported unsustainable gains over the past couple of days.
“The fast grown war like tensions on Pakistan-India border have badly played on investors mind,” Arif Habib Limited Head of Equity Sales Saad Bin Ahmed told media sources.
Moreover, the death sentence awarded to former president of Pakistan Pervez Musharraf by a special court of law also added to tensions on the political front, he said.
“We were thinking the serving army chief’s extension case was the biggest issue, which impacted the market but the recent decision in Musharraf’s case is even bigger than the extension case,” he said.
Thirdly, the market had become overbought and the correction was overdue.
“Investors are aggressively offloading stocks ahead of the rollover week starting Monday,” he said
Investors repay stocks bought with borrowed money during the rollover week by paying cash or rolling over the borrowing.
At 3:36 PM, the KSE-100 was trading at 40,562.94 after having lost 1,040.77 points or 2.57%.