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KARACHI: Stocks melted on Monday in dull activity that saw three-month low volume of 98.3 million shares. The KSE-100 index caved in by 315.58 points (0.76 per cent) to close at 41,004.55.
The market started on a positive note, making intraday gains of 213 points before it succumbed to selling pressure. The positive news flow on macroeconomic front that reckoned Saudi investment of $10bn in CPEC projects and sharp decline of 72pc in monthly current account deficit to $600m went to lift investor sentiments.
But there were, on balance, more negatives that kept investors on the sidelines.
The blue-chip scrips in banks, cement and steel shed their earlier gains after finance minister hinted of a possible withdrawal of the budget amendment providing relief to non-filers to buy expensive cars and invest in property market. The index fell by 421 points. Another worry that drove away investors was anticipation of drop in corporate earnings except for banks, going forward.
The trading volume decreased 38pc to 98.6m shares while the traded value declined by 13pc to Rs4.93 billion. Lotte Chemical, K-Electric, Unity Foods, TRG Pakistan and Agritech Ltd accounted for 31pc of the aggregate turnover.
Foreign investors sold equity worth $0.90m. According to Arif Habib Ltd, sectors contributing to the bearish performance included cement, lower by 114 points, autos 40 points, oil and gas marketing companies 41 points, power 34 points, fertiliser 22 points.
Among cement, D.G. Khan Cement hit its lower lock while Lucky Cement shed 3.75pc, Fauji Cement 4.84pc, Pioneer Cement 3.37pc and Maple Leaf Cement 3.74pc. Automobiles saw Honda Atlas Cars hit lower circuit and Indus Motor Company down 2.70pc.
With futures counter rollover in progress, lacklustre activity was thought to prevail during the rest of the week. Analysts recommended reducing short-term positions on strength due to lack of positive triggers.
Published in Dawn, September 25th, 2018
