KARACHI: The three-day winning streak on the stock market came to an end on Friday as investors decided to book profit. The KSE-100 index lost 573.84 points (1.37 per cent) on the last trading day of the week to close at 41,221.75.

Having accumulated a massive 2,130 points (5.29pc) in the previous three sessions, the index succumbed to selling pressure. Analysts said that the news about disbursement of funds from Punjab Pension Fund to a number of mutual funds had kept the sentiment buoyed in the past two sessions.

However, banks and insurance companies maintained selling pressure in addition to some high-net worth individuals which resulted in index taking a downturn. Selling was more prominent in the exploration and production, banks and cement sector stocks.

On the news front, the country’s current account deficit increased by 43pc to $17.994 billion in the fiscal year ended June 30, compared to $12.621bn in the preceding financial year.

With the elections already in sight, the noise on the political front was deafening. Investors decided not to carry position over the weekend. “Sell now and buy later” seemed to be the strategy. The sentiments were also impacted by the upcoming rollover week for futures contracts.

The volume declined 34pc over the earlier day to 222 million as against 337m shares while the traded value also declined by 33pc to $ 68m. Second-tier stocks contributed 33pc to the total volume.

According to Arif Habib Ltd, sectors contributing to the dismal performance include banks, which shed 148 points, exploration and production 127 points, cement 66 points, fertiliser 47 points and power 31 points.

Stock-wise, major laggards were Habib Bank, down 2.38pc, Pakistan Petroleum 2.13pc, Pakistan Oilfields 2.45pc, Lucky Cement 2.14pc and Oil and Gas Development Company 1.40pc, taking away 205 points. On the flip side, Colgate-Palmolive Pakistan, up 3.89pc, International Steels 2.17pc and Hascol Petroleum 2.08pc added 27 points.

Published in Dawn, July 21st, 2018