KARACHI: Extending the bearish trend of the last days of the previous week, the stocks tumbled on Monday where the KSE-100 index sank 586 points (1.4 per cent) to close at 42,347.
The murky local political situation and the upcoming threat of protest by two major political parties from Jan 17 spooked investors who decided to stay on the sidelines.
It resulted in traded value of the stock on Monday paring to about a half of the previous session. Retail investors and punters were seen dabbling in the second and third-tier stocks.
The fact that market remained unmoved by the WTI crude prices seen above $64/bbl., showed the absence of serious long-term value investors at the market. The only consoling factor on Monday was the continuing foreign buying with net foreign portfolio inflow on Monday at $8.3m. Some optimists suggested that the fall merely depicted Monday blues that was back to haunt the market. They also thought that a correction was due, after the strong rally that had seen Index capture 15pc gains in about as many days.
Volume was down 44pc over the previous session to 130 million shares on Monday while the traded value slipped 45pc to Rs5.8 billion.
Stocks that were a major drag on the KSE-100 index included: Habib Bank, down 2.2pc, United Bank 2.7pc, Fauji Fertiliser 2.7pc, Pakistan Oilfields 3.5pc, Pakistan Petroleum 1.3pc, Pakistan State Oil 3.5pc, MCB Bank 1.7pc, International Steels 4.5pc, TRG Pakistan 5pc and International Industries Ltd 5pc, together washing away 334 points from the index.
On the other hand were Engro Corporation, up 0.3pc, Oil and Gas Development Company 0.1pc and Dawood Hercules 0.9pc.
Commercial banks remained under pressure all through the day due to profit-taking by institutional investors. Oil and fertilizers also dented the index. Pakistan International Airlines flew against the wind, to close at its upper circuit after state minister hinted at privatization of the airline before the end of tenure of the present government.
Published in Dawn, January 16th, 2018
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