KARACHI: Range-bound activity saw the KSE-100 index remained in search of direction and finally settle flat with the addition of 31.75 points (0.08 per cent) at 41,036.30.

Like the day before, the index opened positive and went on to climb to intraday high by 189 points. But bears soon took over, erasing all the gains and pushing it to intraday low by 47 points.

Investor sentiments were weighed down in the face of gathering clouds over the economic front with no concrete measure seen to replenish the depleting foreign exchange reserves, down $295 million to $9.3 billion as of Sept 14.

Participants also waited to watch over what was to unfold in the monitory policy statement by the month end as different brokerage houses anticipated hike in policy rate by 50-100 basis points.

Market participation was marginally up by 3pc to 102m shares while the value traded was down by 9pc to Rs4.5bn. Exploration and production shares maintained healthy volume as investors were attracted by the increase in international crude oil prices. Major gainers on the sector included Pakistan Oilfields, higher by 2.11pc and Pakistan Petroleum 0.98pc.

Traders were optimistic about the cement sector on back of chatter over the price increase by Rs20-25 per bag in the northern region. Gainers included Lucky Cement, higher by 1.61pc, Maple Leaf Cement 3.27pc, DG Khan Cement 1.32pc and Pioneer Cement 0.93pc.

Automobile stocks saw further price erosion as lack of clarity on non-filers continued to take its toll. Banks remained under selling pressure where Allied Bank, lower by 0.14pc, United Bank 0.26pc, MCB 0.31pc and National Bank 0.08pc closed in red.

According to Arif Habib Ltd, sectors contributing to the day’s performance included exploration and production, increasing by 80 points, cement 32 points and fertiliser 13 points. Moving forward, analysts recommended cautious trading and trimming of short-term positions on strength.

Published in Dawn, September 26th, 2018