KARACHI: Disappointed by the federal budget 2017-18, investors at the PSX dropped stocks soon after the opening bell on Monday which saw the KSE-100 index sink to intraday low by 601 points.

Local participants pulled up value stocks at dips, which saw the index recover a little to close the session down by 497.97 points (0.95 per cent) at 52,138.90.

“In the first session post budget investors weighed implications of the single-slab Capital Gains Tax, higher tax on dividends and most other measures which did not find favour with investors,” said a market participant.

The volume was slumped 53pc over the previous session to 203 million shares. The trading value also declined to Rs13bn from Rs20.7bn.

According to Topline Securities major losers were led by HBL which fell by 2.2pc, LUCK 2.8pc, UBL 2.6pc, DAWH 2.7pc and PAEL 3.9pc taking away 273 points from the index.

While OGDC rise of 0.8pc, SNGP 1.6pc, MARI 1.6pc, HUBC 0.5pc and PSMC 1.4pc supported the index by adding 62 points.

On the sector front, banks eroded 202 points, cement 126 and fertiliser 47; while E&P’s added 24 points and power added 15 points.

“Investors continued to book gains in MSCI plays ahead of the rebalancing with HBL , MCB, UBL, Lucky Cement and ENGRO closing in the red, effectively taking away 266 points,” stated analysts at Intermarket Securities.

Mixed sentiments were seen in the steel sector where Mughal and ASTL closed on their upper circuits, whereas ASL dropped 1.51pc and ISL 0.79pc.

ASL was among volume leaders with 12m shares of the steel company changing hands.

Published in Dawn, May 30th, 2017