KARACHI: Stocks snapped five-day winning streak on Thursday as investors were tempted to book profit after the market recorded gains close to 4pc in the past five sessions following smooth transition of power to the caretaker setup. The benchmark KSE-100 index retreated 196.09 points (0.44 per cent) to close at 43,948.11.

The market fell short of fuel that had fired the recent rally as the heavyweight financial and cement stocks were thought to have fully recouped their earlier losses.

Investors also took notice of continuous foreign outflows which in the last four days had amounted to a tall order of $29.5 million. The figures revealed by the National Clearing Company of Pakistan showed slowdown in foreign sales to $0.4m.

The local market made intraday gains of 189 points, followed by mid-session profit-taking which pulled the index to intraday low by 250 points. The index managed to claw back a little before close.

On the political front, temperatures were running high as an inquiry against former premier Nawaz Sharif and former Petroleum Minister Shahid Khaqan Abbasi was opened for allegedly awarding a 15-year contract to a ‘favoured’ company for the construction of liquefied natural gas terminal.

The news flow was inundated with frivolous issues such as a yet-to-appear ‘book’ by ex-wife of a front-line political leader. On the economic front,World Bank downgraded Pakistan’s GDP growth estimate from 5.8pc in 2017-18 to 5pc for 2018-19.

Major contribution to the index downside came from Habib Bank, down 2.42pc, Engro Corporation 2.06pc, Pakistan State Oil 3.75pc, Allied Bank 4.12pc and MCB Bank 0.71pc, taking away 172 points. On the flip side, Lucky Cement 2.39pc, Bank Al Habib 1.23pc and Colgate-Palmolive Pakistan 3.72pc added 63 points.

Published in Dawn, June 8th, 2018