KARACHI: Stocks drifted down on Wednesday with the KSE-100 index losing 116.61 points to close at 33,949.26. The market witnessed a volatile session with the index trading in the band of 34,200 to 33,936 points.

“After the opening bell, the index gained some positive momentum, however, this could not be sustained as the market witnessed significant selling pressure,” said dealers at a major brokerage house.

Foreigners sold $12.33 million worth stocks, taking the year-to-date offshore selling at $259.86m.

Spectrum Securities Head of Research Abdul Azeem explained that all regional markets were under selling pressure from foreigners due to uncertainty over the crude prices.

“The medium-term foreign investors who could not take the heat were making their way out of stocks,” he said.

Banks also sold $2.36m worth stocks, but much of the float was absorbed by mutual funds and individuals who bought $2.14m and $4.12m.

“The market is in consolidation phase and it is likely to continue this way for the balance of the year,” said Intermarket Securities Director Research Raza Jafri.

He said that there was lack of triggers and added that though SBP monetary policy was around the corner, a 50 basis points cut in the last policy had scarcely rejuvenated investor sentiments.

He said that investors were on a wait and watch; they were even avoiding heavyweight sectors such as E&P and banks for lack of confidence in the profitability outlook.

The index found major support from MARI (4.07pc), FML (3.96pc), NML (1.63pc) and ATRL (3.37pc). However, selling pressure was seen in PPL (1.16pc) as the news of government denying lease extension of SUI block shook investors’ confidence.

Published in Dawn, November 19th, 2015