KARACHI: The KSE-100 index lost 572 points (1.32 per cent) on Thursday to close at 42,775.04 on Thursday.

The index made an intraday high of 43,387 points, but sank below the earlier day’s level as the Lahore High Court ordered the government to release the inquiry report on the Model Town firing incident.

“Investors were spooked by the development as it does not bode well for the ruling political party, which is already facing National Accountability Bureau cases for alleged corruption,” said dealers at a big brokerage firm.

Investor participation contracted during the day as the trading volume was down 26pc to 166 million shares from a day ago. The trading value was down 27pc to Rs8.7 billion.

Major contribution to total market participation came from K-Electric, Sui Southern Gas Company and Engro Polymer and Chemicals.

Foreigners were net sellers of $1.6m worth of stocks, breaking the buying streak of the last seven days. Among locals, banks and individuals also decided to book profit.

Top-five contributors to the index decline were Habib Bank, which dropped 2pc, MCB Bank 3pc, Engro Corporation 2.4pc, United Bank 1.5pc and National Bank 3.9pc, deducting 202 points from the benchmark. Bank Al Habib also went down 1.45pc and Meezan Bank lost 1.78pc.

The fertiliser sector contributed 91 points to the index fall.

In contrast, K-Electric gained 1.3pc, Bank Alfalah 0.5pc, National Refinery 0.6pc, Soneri Bank 2.2pc and Pak Suzuki Motor Company 0.6pc.

General Tyre and Rubber Company closed down 3.6pc after reporting annual earnings per share of Rs14.75, down 15pc from a year ago, along with a hefty payout of Rs15 per share.

A major market participant said a similar bear trend was likely to continue until some clarity emerged on the political scene.

Published in Dawn, September 22nd, 2017