KARACHI: Stocks on the Pakistani equity market rounded off the week on fourth consecutive day of range-bound, lacklustre trading. The index shed 81.77 points (0.19 per cent) to close at 42,842.18.
Although the KSE-100 index started out on positive note with gains of 25 points, it soon succumbed to selling pressure. Analysts said that expectations of aggressive buying by mutual funds like the previous day did not materialise.
The index remained in search of direction as it oscillated between the intraday high and low by 191 points and 125 points.
On the economic front, major news flow was Pakistan’s plans to borrow more than $4 billion from the Saudi-backed Islamic Development Bank (IDB) as part of its attempts to replenish precariously low foreign exchange reserves.
Analyst Ahsan Mehanti said the economic uncertainty, dismal earnings in the banking sector, weak global crude oil prices, foreign outflows and concerns about the pending circular debts in the energy sector played a catalyst role in bearish close at PSX.
The volume increased 21pc over the previous day to 250 million shares while the traded value grew 18pc to Rs.12.3bn. Second-tier stocks including Pak Elektron, Engro Polymer and Chemicals, Lotte Chemical, Unity Foods and K-Electric contributed 27pc to the day’s total turnover.
Sectors that took major selling pressure included fertilizer, lower by 35 points, banks 26 points, power 25 points, textile 19 points and refinery 17 points while oil and gas marketing companies added 28 points.
Scrip-wise, major decliners were Hub Power, down 1.43pc, Bank Al Habib 1.44pc, Dawood Hercules 1.74pc, Engro Fertilisers 1.45pc and DG Khan Cement 1.90pc, taking away 80 points. On the flip side, United Bank, up 1.33pc, Lucky Cement 1.40pc and Sui Northern Gas Pipelines 2.24pc added 57 points.
Published in Dawn, August 11th, 2018