KARACHI: A dull and drab session at the stock market on Tuesday saw the KSE-100 index managing to add a minor 66.47 points (0.16 per cent) and close at 41,419.24.

Investors remained in search of direction which led to choppy trade as the index juggled between red and green. The last fifteen minutes of trading saw some brisk buying which decided fate of the market.

Opening in the negative, the index swiftly dropped by over 250 points as news filtered into the market of a stalemate in policy level talks with the International Monetary Fund.

Harsh conditions set out by the global lender related to increase in revenue collection target by 19pc, flexibility of the rupee against the dollar, double digit interest rates, power tariff raise by 20pc and audit of each tax payer. Along with that, it asked for all details of the country’s financial deals with China. Even though in need of dollars, the conditions set forth were unacceptable to Pakistan. It spooked investors over the economic headwinds, which forced them to reduce short-term positions.

The news of receipt of $1 billion from Saudi Arabia for balance of payment support lifted sentiments and some long-term players took heart in the last half hour to cherry-pick scrips, though most market participants remained on the side lines, cautious also due to market closure on Wednesday.

Sector contributing to the performance include chemical, higher by 42 points, exploration and production 30 points, tobacco 16 points and fertiliser 12 points.

The volume declined further by 5pc to 167 million shares. Greater participation was seen by Engro Polymer, Nimir Resins and Pakgen Power which provided combined volume of nearly 40m shares or a quarter of the entire market turnover.

Scrip-wise major contribution to the index upside came from Pakistan Petroleum up 1.41pc, Pakistan Tobacco 3.21pc, Searle Company 3.65pc, Lucky Cement 1.08pc and Colgate-Palmolive Pakis­tan 4.98pc, adding 92 points.

Published in Dawn, November 21st, 2018