KARACHI: Stocks managed to close in the green after a volatile session on Monday with the KSE-100 index recording minor gains of 53.35 points (0.12 per cent) to close at 45,083.57.

Trading started on a dull note with investors in no mood to take fresh positions as they were spooked by the turmoil in international markets amid fears that rising tensions between the United States and China could lead to a trade war.

The fears were exacerbated by the jitters peculiar to the roll-over week. The index traded in the range of 330 points. The volume declined by 18pc over the preceding day to 188 million shares while the traded value dropped 15pc to Rs8.0 billion. The leaders were K-Electric, TRG Pakistan, Bank of Punjab, Fauji Cement and Pak Elektron.

According to Arif Habib Ltd, the activity was more reflective of accumulation in blue-chip stocks rather than profit-taking. Index went down by 245 points during the day and dragged cement, banks and off-board scrips alongside.

Post rupee devaluation, foreign activity was observed to be on net buying side. Intermarket Securities stated that the index had started to show signs of exhaustion after testing resistance at 45,000. “We expect the 100 index to test next resistance at 45,431 (50pc retracement from 53,127) and 45,494 (high posted Jan 24). Immediate support is 44,300”.

Major gainers included United Bank, up 1.83pc, Pakistan Oilfields 1.29pc, Adamjee Insurance Compan 5pc, Fauji Fertiliser 1.08pc, Pakistan Petroleum 0.55pc and Oil and Gas Development Company 0.50pc. OGDC sector remained top-index contributor, adding 51 points as rising geopolitical risk in Middle East has led to surge in crude oil prices.

Published in Dawn, March 27th, 2018