KARACHI: Stocks succumbed to selling pressure on Friday with the KSE-100 index closing down 261.31 points (0.60 per cent) at 43,267.20.

The market started out on a positive note as it extended the previous day’s rally and remained steadily into the green for all of the first session. However, fear gripped the investors in the second session as rumours continued to circulate regarding Pakistan being put back on the FATF terror-financing watch list.

Although no credible reports were available till the close of the market, investors decided to play safe and reduce positions. A major stockbroker said that investors were worried about the FATF impact.

He hoped that the government’s actions in the next few days would dispel investors’ fears and calm the market. Figures released by the National Clearing Company of Pakistan in the evening showed massive sell-off by ‘individuals’ of $5.52m worth stocks, followed by profit-taking in ‘brokers’ proprietary trading’ through sell of shares valued at $1.18m. Foreign investors also cherry- picked shares worth $0.95m, taking advantage of discounted prices.

Cement and fertiliser sectors took the brunt of blow of heavy selling in the second half of the day’s trading.

The volume increased significantly by 28pc to 245m shares from 191m shares a day ago. The traded value also rose by 11pc over the previous day to Rs10.1bn. Low-priced scrips including Doost Steel, Azgard Nine, TRG Pakistan, Lotte Chemical and Bank of Punjab accounted for 33pc of total turnover.

According to Arif Habib Ltd, sectors contributing to this decline include cement (45 points), fertiliser (43 points), OGMCs (23 points), commercial banks (21 points) and autos (19 points).

Pak Oilfields, MCB Bank, Kot Addu, Bestway Cement and Bata Pakistan contributed 86 points to the index.

Published in Dawn, February 24th, 2018