KARACHI: Stocks managed to snap a six-day losing streak on Monday as the KSE-100 index closed flat with a gain of 25.13 points (0.06 per cent) at 41,648.65.

Trading was choppy with the index initially making to intraday high by 289 points. Although speculations on the finalisation of the care-taker prime minister were taken as an encouraging sign, seen as leading to timely elections, investors’ concerns centred on the deteriorating macroeconomic numbers where the current account deficit swelled to $14 billion in 10MFY18.

On the first day of the rollover week for future contracts, investors decided to liquidate positions and wait and watch for market direction going forward. Participants also tread cautiously, stung by the benchmark index that has lost 5,500 points (11.7pc) since Apr 6.

Investors were however comforted by the fact that the market drifted down by just 32 points intraday. The figures released by the National Clearing Company of Pakistan showed continuing sell-off by foreign investors who offloaded stocks worth net $4.26 million.

The volume increased 7pc over the previous session to 88m shares, while the traded value dropped 14pc to Rs3.7bn due to buying in small-cap stocks. Fauji Cement, Pak Elektron, Engro Polymer and Chemicals, Fauji Fertiliser and Bank of Punjab came out as the leaders, contributing 28pc to the total turnover.

Commercial banking, cement and steel sectors were able to garner investor interest where Habib Bank gained 2.27pc, National Bank 0.49pc and United Bank 1.49pc. Cement shares also saw cherry-picking with Fauji Cement, higher by1.23pc, Maple Leaf Cement 1.53pc, DG Khan Cement 0.89pc and Lucky Cement 0.46pc. Other lead gainers were Dawood Hercules, up 1.71pc and Pakistan Petroleum 0.39pc. Exploration and production remained under pressure despite upside in international oil prices. Pakistan Oilfields fell 1.23pc and Oil and Gas Development Company shed 0.84pc which with Hub Power robbed index of 56 points.

Published in Dawn, May 22nd, 2018