KARACHI: Share prices dropped sharply on the stock market on Monday with KSE-100 index down 191.16 points to close below the 29,000 level, at 28,878.77.

Institutional investors stood on the sidelines, while foreign portfolio inflows slowed down to $0.92 million on Monday as the global fund managers were off for the Easter holidays.

Although the market started out on a positive note with the KSE-100 index making an initial gains of 50 points, the index could not sustain the level as bears overwhelmed the bulls. The trading was generally dull and volumes dropped by 40pc to 163m shares in the absence of any major triggers. The day’s trading was concentrated mainly in second-tier stocks. Fauji Cement led the volume leaders with trading seen in 11m shares.

Speculators and day traders moved nervously, though most decided to take profit, resulting in sales by individuals in the sum of $3.51m. Ahsan Mehanti at Arif Habib Corp stated that the bearish activity was witnessed due to institutional profit taking following renewed circular debt issue in energy sector. Dismal earnings outlook due to export losses in textile and cement sectors; gas supply issues in fertiliser sector and dismal payouts for the quarter end corporate earnings was a major reason for bearish sentiments despite hopes of receiving over $1.3bn 3G/4G telecom licence auction on April 23.

In the oil and gas sector, 11 out of 12 stocks declined. Some cherry picking was seen in FFC, FCCL and MCB Bank. Engro lost 2pc due to investors concerns over gas supply after inauguration of two Guddu power plants. Cement stocks came under profit-taking with 34m shares traded. Cherat Cement and DGKC dropped by 2.56pc, and 0.91pc respectively, while AKZO, FCCL & MLCF appreciated by 5pc, 1.80pc and 0.16pc respectively, analysts at Sunrise Capital noted.