KARACHI: After strong gains of 2.6 per cent a day earlier, the stocks consolidated on Wednesday as the absence of triggers failed to further fuel the rally. The KSE-100 index edged higher by 27.43 points (0.06pc) and closed at 42,772.25 after oscillating widely between the intraday high and low by 316 and 68 points.

After midday, profit-booking was seen where investors reduced their positions. The failure of the government and the opposition to reach consensus on a caretaker set-up dampened investor sentiments who were also concerned over ugly incidents and statements that seemed to taint the political atmosphere.

The heavy selling by foreign investors of equity worth 11.8m on Tuesday also spooked investors, even though the outflow slowed down to $0.73m.

Analyst Ahsan Mehanti commented that scrips closed modestly higher on strong valuations amid cautious activity ahead of monetary policy announcement on May 25. Moody’s expectation on rupee fall, auto assemblers’ worries over sales drop from non-filers, easing global crude oil prices and concerns for surging current account deficit invited mid-session pressure.

The volume slipped 7pc over the earlier day to 131 million shares while the traded value fell 24pc to Rs5.5 billion. Faysal Bank, Fauji Cement, Pak Elektron, Bank of Punjab and Sui Northern Gas Pipelines came out the as the leaders, accounting for the 33pc of the aggregate turnover.

Selling was mainly witnessed in cement, fertiliser and exploration and production sectors, while banks, power and tobacco saved the day by contributing moderate gains. Banking added 74 points, power 30 points and tobacco 25 points while cement took away 27 points, fertiliser 21 points and exploration and production 21 points.

Stocks that contributed positively included MCB Bank, higher by 27 points, Pakistan Tobacco 25 points, Hub Power 23 points, Bank Al Habib and National Bank 15 points while decliners were United Bank, decreasing by 22 points, Lucky Cement 20 points, Adamjee Insurance 14 points, Oil and Gas Development Company 12 points and Engro Fertiliser 11 points.

Published in Dawn, May 24th, 2018