KARACHI: Stock market remained range-bound on Wednesday as futures roll week overshadowed earnings announcement season. The KSE-100 index slipped by another 50.16 points at 33,845.30.

Volume decreased by 16pc to 141 million shares and trading value by 21pc to Rs6.96bn as local institutional participation was minimal.

Mutual funds alone took some interest in bargain deals and picked up stocks valued at $4.37m. Individuals and day-traders continued churning in low and mid-tier stocks for daily gains.

Foreign funds also remained sidelined, taking a bit of profit through sale of $0.62m worth stocks, including which the month to-date foreign portfolio outflow stood at $53.96m.

Analyst at a major brokerage house stated that the market remained under pressure throughout the day. Significant news included Toyota Japan exhibiting interest in increasing its stake in subsidiaries up to 80pc, which reflected in a positive run in stock price of Indus Motors which hit its ‘upper circuit’ in early first half.

The rundown in global crude oil prices resulted in a continued pressure on the oil and gas sector stocks, while PAEL and PIBTL witnessed profit-taking to end lower by 1.3pc and 1.9pc. In the cement sector, investors’ sentiments remained subdued for fear of price war among cement producers following DGKC expansion policy.

The news of GIDC being approved by the National Assembly further dampened sentiments in major cement stocks. FCCL and MLCF were down by 0.03pc and 0.23pc while Power Cement gained 7.98pc. Elsewhere, ENGRO, EFERT plunged while FFBL and FFC rose in the chemical sector.

Analyst Ahsan Mehanti commented that stocks closed bearish led by oil, cement and banking stocks on weak earnings outlook. Lower international oil prices, falling local cement prices and narrowing of banking spreads played a catalyst role in bearish activity at KSE despite healthy earnings reported in banking, pharma and cement sectors.

Published in Dawn February 26th , 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play