KARACHI: Stocks were battered for the fourth consecutive session on Friday with the Pakistan Stock Exchange’s (PSX) benchmark 100-share index losing 270.67 points (0.87pc) to close at 31,011.77.

In line with regional markets, the local bourse opened on a bearish note with an early negative change of 195 points. The index then consolidated around the level of 31,100 points before falling further. Stocks plunged by 452.39 points (1.44pc) during the week.

Volume fell to 110 million shares of the trading value of Rs5.8 billion on Friday, from 130m shares, valuing Rs6.6bn the previous day. Foreign investors sold equities worth $3.13m, taking the year-to-date outflow to $82.43m.

Dealers on the sales desk of Global Securities said an appreciating Japanese yen added some pressure on automobile sector while profit-taking continued in the cement sector. Major positive contribution towards index came from NBP which rose 5pc after announcement of better-than-expected results, followed by FFC which increased 0.86pc, JDWS 4.34pc and HMB 2.5pc, with a cumulative contribution of 27 points.

However, heavyweights OGDC (-2.39pc) ENGRO (-1.96pc) PPL (-2.07pc) and PSO (-2.53pc) dragged the index down by 95 points.

Dealers at brokerage Intermarket Securities stated that going forward the stock exchange may

sustain the current loss in the short term as developments on the United States and oil market front were awaited.

Moreover, as the global market volatility is highly correlated to crude oil because it is the most traded commodity, the market direction could be determined by the outlook on oil pricing at least in the short term, they said.

Published in Dawn, February 20th, 2016