KARACHI: Stocks were hammered on Monday with the KSE-100 index closing down by 171.98 points or 0.58 per cent at 29,711.12.

Profit taking by foreign investors, which entered the third week, was the major factor in the stock market decline.

On Monday, foreign portfolio outflow amounted to a significant $8.92 million.

The relentless sell-off by foreigners came on top of the previous two week’s net sale of $15.14m.

The foreigners took profit mainly in the banks and oil and gas sector with net sale of $5.1m and $1.4m worth stocks, respectively.

All 13 stocks on the oil and gas sector recorded losses on Monday.

Yet, net buying of shares valued at $7.39m by ‘individuals’ on Monday, helped cushion the blow of foreign selling. Institutional investors meanwhile, stood on the sidelines, exercising caution after the decision of MQM to quit the coalition government in Sindh.

Ahsan Mehanti at Arif Habib Corp observed that stocks closed bearish amid thin trade on political uncertainty. Rising political noise, bearish trend in global equities and commodities and uncertain outlook on SOEs privatisation programme played a catalyst role in bearish activity.

A dealer said that the activity was thin on Monday with a decline both in volume of shares traded and trading value.

“Short term investors concentrated mainly on cherry picking in sideboard items,” he said.

Analyst Muhammed Mobeen stated that investors remained uncertain on Monday following a major political party decision to back out from the Sindh government, Oil and gas sector continued its southwards journey due to weakness in global oil prices.

Nirala Foods (NMFL) hit its upper circuit over expectations of a turnaround in the company. EFOODS announced 9M2014 earnings of Rs1.06 per share, compared with Rs1.62 per share in 9M2013.

Brokerage Sunrise Capital noted that in the banking sector UBL, NBP, MCB and FABL plunged by 0.72pc, 0.62pc, 1.06pc and 0.90pc, respectively. Profit taking was also witnessed in the automobile and cement sectors.

In the heavyweight oil and gas sector OGDCL, PSO and PPL shed 0.72pc, 1.11pc and 2.11pc, respectively.

Published in Dawn, October 21st , 2014