KARACHI: Stocks succumbed to selling pressure on first trading day of the week with the KSE-100 index conceding 307.98 points (0.74pc) and close at 41,352.77.

The index opened positive and moved sideways until investors started to count the negatives. During the one-day visit of prime minister to UAE, the Emirate’s leadership discussed matters relating to strengthening bilateral trade and others, but apparently there was no mention of the expected big financial assistance package for Pakistan.

Investors’ concerns deepened on President Trump’s new tirade at Pakistan. Besides, reports of the International Monetary Fund asking for further devaluation of rupee; increase in discount rates to double digits, enhance general sales tax rate as conditions for bailout package further spoilt market mood.

The only consolation was the expected first tranche of $1 billion from Saudi Arabia in a couple of days, to support country’s dwindling foreign exchange reserves.

The volume declined 13pc to 176 million shares while traded value dwindled 33pc to Rs6.95bn, signifying thin investor participation. Brisk activity was witnessed mainly in the second-tier stocks.

Mid-day selling in banks and cement sent the index plunging down to intraday low by 420 points. However, it managed to recover some of the lost ground on selective buying by individuals and banks. Foreigners were net sellers of stocks worth $4.44m.

Sector-wise, banks and cements together scrapped 162 points from the index, while power shed 35 points, exploration and production 23 points and fertilisers 23 points.

Among stocks, those responsible for major index downside included Habib Bank, down 1.77pc, MCB 1.93pc, Hub Power 2.05pc, Fauji Fertiliser 1.82pc and United Bank 1.10pc, taking away 104 points. On the flip side, Pakistan State Oil rose 1.13pc to add 12 points.

Published in Dawn, November 20th, 2018