KARACHI: Stocks retreated on Tuesday with the KSE-100 index declining 197.72 points, or 0.40 per cent, to close at 49,767.91.
Some market participants believes the index was in a phase of consolidation before making another attempt to take a decisive leap over the 50,000-ponit level, which has become a firm resistance.
Others thought stocks drifted lower on mounting concerns over the liquidity crunch following the SECP’s crackdown on in-house financing.
“Further reduction in the number of margin eligible securities acceptable as collateral from Wednesday has also pushed leveraged investors to trim their positions,” said a trader.
Volumes declined 2.4pc to 353 million shares while the trading value fell 8.5pc to Rs17.2 billion. About 34 stocks closed on their upper circuits while 16 scrips closed on their lower limits.
Analyst Nabeel Haroon at JS Global said the market opened on a sombre note following the terrorist incident in Lahore. During the later hours, selling pressure was witnessed by weak and cautious holders.
Trader Abra Juma at Global Securities observed that the index succumbed to selling pressure, losing 509 points from its peak and reached the day’s low at 49,528pts. But at that level the index found support and gained back around 300 points before finally settling at 49,768 points by the end of the day.
Engro Corp 1.1pc, United Bank 0.8pc, Fauji Fertiliser 1.2pc, Pakistan Oilfields 1.5pc and Oil and Gas Development Company 0.7pc cumulatively took away 89 points from the index.
Al-Ghazi Tractors declared earnings per share of Rs33.40 along with a dividend of Rs12.50 for 2016. Dividend stood slightly short of market expectations, which pushed its stock down 2.1pc.
Shares that swam against the tide included Sui Northern Gas Pipelines 3.56pc, Habib Bank 0.42pc and Shell 5pc, which together added 44 points to the index.
Published in Dawn, February 15th, 2017
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