KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-share index managed to break out of a four-session losing streak on Thursday, though it could only post a recovery of 18.74 points (0.06pc) to settle at 32,617.74.

The significant feature of the day’s session was volume which stood at a nine-month low of 80.3 million shares of the trading value of Rs3.94bn. On Wednesday, the volume was 135.6m shares (value: Rs7.26bn).

Analyst Mohammad Rizwan, VP at Topline Securities, said the market remained depressed despite decline in bond yields in Wednesday’s auction of PIBs (Pakistan Investment Bonds).

Small-cap stocks again remained in the limelight as big volume was seen in Pak Refinery, Pak Elektron and Byco Petroleum.

A prominent market participant stated that investors remained largely sidelined due to the upcoming budget. “Market participants re­main uncertain over the direction of the budget as the government hints at imposing an additional Rs200bn in taxes on areas beyond the current tax net.”

Investor sentiment also remained subdued as the government passed the controversial GIDC bill, translating into pressure in the textile and fertiliser sectors.

With no trading interest, the possibility of discount rate cut in the upcoming monetary policy failed to provide any trigger to the market. However, the banking sector witnessed investors’ interest with lacklustre volumes.

Cement companies also remained under pressure, with giants DGKC, FCCL, LUCK ending in the red.

Major news flow on Thursday was the revelation that the GDP growth would fall short of target during this fiscal year due to floods, fall in international commodity prices, decline in large-scale manufacturing growth and prolonged cold weather.

Published in Dawn, May 22nd, 2015

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