KARACHI: Pakistani equities continued to bleed for the sixth straight session on Tuesday with the KSE-100 index plunging 311.56 points (0.70 per cent) to close at 44,066.96. Collectively in the last six sessions, the index has lost 1,476 points or 3pc.

Market participants say investors are avoiding the stocks due to uncertainty over the implementation of all budgetary measures as various committees and authorities are still reviewing them. Moreover, the external account imbalances remain to be addressed.

The federal government announced the issuance of floating rate Pakistan Investment Bonds to improve debt profile and meet the rising financial needs, but the investors took no notice. Above all else, the fear that grips investors’ minds is the uncertainty over the heated political atmosphere, which puts question marks on peaceful elections and formation of the next government.

The volume improved 18pc over previous day to 154m shares while the traded value also increased 20pc to Rs6.73 billion. Stocks that contributed significantly to the turnover were Bank of Punjab, Engro Polymer and Chemicals, Unity Foods, Sui Southern Gas Company and Pak Elektron, reflecting 27pc of the total share.

Banking sector with the highest weightage of 23.8pc in the KSE-100 index was the leading loser, erasing 132 points, as market expects weaker 2018 earnings due to continuation of super tax and increase in pension obligations.

Fertiliser sector, which helped carry the index up in the 1QCY18, succumbed to selling pressure, taking away 54 points. Other sectors contributing to the decline were oil and gas marketing companies, lower by 42 points, cement 34 points and autos 16 points.

Stocks that suffered the major decline included MCB Bank, down 2.3pc, Fauji Fertiliser 2.2pc, Sui Northern Gas Pipelines 3.5pc, Habib Bank 0.8pc and Engro Corporation 1pc, together wiping off 132 points from the index.

Published in Dawn, May 9th, 2018