KARACHI: The stock market continued to retreat for the fourth consecutive session on Monday with the KSE-100 index witnessing a fall of 265.22 points (0.57 per cent) to close at 46,593.34.

The market has witnessed staggering decline of 12.37pc since hitting its intra-day all time high at 53,124 points on May 25, 2017.

The index started out on a strong note and crossed the 47,000 level to show early intraday gains of 225 points. Buying was possibly triggered by the Securities and Exchange Commission of Pakistan’s approval of amendments to the regulations for in-house financing in the stock market, allowing brokers to continue funding share purchase from their own pockets, without seeking margins in cash. The entire process will be documented.

But the much-awaited refurbished financing product failed to hold investors’ interest as the index succumbed to selling pressure, hitting the intraday low by 546 points.

Subsequently, value hunters swooped in for select buying on dips, which helped recoup some lost ground.

Volumes rose 31pc over the previous session to 170 million shares while traded value increased 22pc to Rs9.1 billion.

The biggest falls during the day were noted in HBL down 1.1pc, SNGP 3.3pc, DGKC 2.6pc and ENGRO 1.3pc, eroding 160 points, while OGDC rose 1.6pc, MCB 1.7pc, POL 2.4pc, HUBC 1.4pc an KTML 5pc added 127 points. Fauji Fertiliser fell to its lowest in eight years since March 2009.

Sector-wise, points were shed in fertiliser 78, cement 64, auto assembler 56, banks 54 and OMC’s 44; while E&P’s added 67 points, textile 37, technology 17 and power 17 points.

Brokerage JS Global stated that in spite of declining oil process, the E&P sector gained as investors found valuations attractive. PPL rose 0.61pc and POL 2.40pc to close in green. Commercial banks showed mixed trend with gains in UBL at 0.57pc and MCB 1.70pc, closing in the green, while drops in HBL 1.09pc and NBP 2.85pc shed values.

Published in Dawn, June 20th, 2017