KARACHI: The stock market closed almost flat on Monday with a minor erosion of 6.55 points (0.02 per cent) at 42,743.65.

The market got off to a roaring start and made to the intraday high of 337 points on the back of purchases by foreign investors of stock worth $4.68 million and mutual funds $2.82m. In the later hours, however, the index succumbed to selling pressure and sank to intraday low of 122 points, but managed to lift close to the surface at the end of the day. Foreign buying was concentrated in banks ($4.1m) while foreigners opted to book gains in fertiliser stocks, offloading $1.2m.

The volume dipped 4.4pc to 126m from 132m shares on Friday. The traded value improved to Rs6.9 billion, from Rs5.4bn. Analysts at Intermarket Securities cautioned: “a fluid political situation may continue to take its toll on the overall market sentiment”. Market participants calculated year-to-date loss of 5,063 points from KSE-100 index (10.6pc).

The upsurge in the index was led by the fertiliser sector on the back of further rise in international urea prices. Fauji Fertiliser and Engro Fertiliser hit their upper circuits.

NBP went down 5pc, UBL 1.5pc, MCB Bank 0.9pc, SNGP 1.6pc and CHCC 3.7pc, shedding 97 points, while FFC gained 5pc, EFERT 3.9pc, DAWH 2pc, OGDC 0.6pc and BAFL 2.3pc, adding 122 points.

Analysts at brokerage Aba Ali Habib stated that OGDC gained Rs0.92 after new discovery in Tando Allah Yar Block that would add 72 barrels of oil per day and 10-mmcfd gas to the existing production of the company, which has 95pc interest in the block.

On the sector front, fertiliser added 108 points, while on the flip side banks scrapped 69 points, OMCs were down 20 points while cements caused set back of 17 points.

Published in Dawn, September 26th, 2017