KARACHI: The Pakistan Stock Exchange (PSX) succumbed to selling pressure in the outgoing week as investors were spooked by the global equity meltdown and unabated foreign selling.

The benchmark KSE-100 index was dragged down by 1,015 points (3.12 per cent) to close at 31,364.

As the investors hastened to book profit, the index conceded all the gains it had accumulated in the rally that had stretched to 11 days before the turning of the tide.

Average daily volume declined 2pc to 140.8 million shares and average daily value fell 7pc to Rs76.3 billion week-on-week.

Foreigners were net sellers of $17.3m worth equity during the week. Net inflow of $3m was noted in the cement sector, while banks and oil and gas exploration stocks witnessed net foreign selling of $9.6m and $6.5m, respectively.

Dealers at Topline Securities figured out that the household goods and financial services were among the top gainers on a sector level, rising 3.3pc and 3pc, respectively.

Beverages, automobile and parts and oil and gas were among the major losers over the week as they fell 6.1pc, 5.6pc and 4.8pc, respectively.

Analysts at Arif Habib Ltd said that the ever expanding stockpiles of US crude exacerbated the already grim outlook of global glut, keeping local oil scrip’s (OGDC and PPL) under stress.

Banking scrip’s suffered the same fate (UBL, HBL and BAFL underwent weekly losses; MCB and ABL failed to impress amid announcement of unexciting results) and foreign selling provided no further relief to the bourse.

Stock strategists believed that the ongoing announcements of corporate results could spur activity and provide some impetus to the market in the week ahead.

However, the stability of the local bourse remained largely dependent on the restoration of calm in the global markets.

Stock market gurus’ recommendations ranged from wait-and-watch strategy to cherry-pick fundamentally strong scrips and going long on investments.

Published in Dawn, February 14th, 2016