KARACHI: After a strong start on Wednesday, the stocks relapsed and the KSE-100 index closed with a loss of 108.36 points (0.33 per cent) at 32,915.44.

The investor sentiments were jolted after the terrorist attack on a private bus that killed dozens of civilians. The market was also cautious after a notice which stated that “due to the inability of ACE Securities to function as a brokerage house because of its financial precariousness as evident from non-resolution of large number of investors’ claims”, the board of directors of KSE has decided to suspend the TRE Certificate of the brokerage with immediate effect.

Under the weight of negative factors, investors ignored the MSCI semi-annual index review.

Traded volume of 154.6 million shares worth Rs8.4 billion remained lower than year-to-date average volume of 243.1m shares of Rs13.3bn.

Foreign investors bought stocks valued at $3.93m, which provided some comfort to the market.

Small cap stocks remained volume leaders, including PAEL, Byco, Ghani Automobile, TRG Pakistan and K-Electric.

Ahsan Mehanti at Arif Habib Corp stated that stocks closed bearish amid thin trade led by second- and third-tier scrips. Profit-taking was witnessed on concerns for security unrest in the city.

Support remained in oil and gas stocks after the rise in global crude prices and the likely increase in local gas prices.

“Pre-budget uncertainty and minor change in MSCI review for May 2015 played a catalyst role in bearish activity.”

Analyst Ahmed Saeed Khan commented that the oil sector rallied with ATRL up 2.2pc and PSO adding 0.6pc.

After an initial rally in cement stocks, most of the sector’s top performers ended in red. PIOC, DGKC and CHCC shed 2.6pc, 2.2pc and 1.8pc, respectively.

Published in Dawn, May 14th, 2015

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