KARACHI: Stocks closed flat on Friday as investors avoided carrying positions over the weekend in the absence of triggers and lack of ‘clarity’ regarding the inconclusive talks with the International Monetary Fund.
What the Finance Minister Asad Umar conveyed in the parliament was bare minimum as the government and opposition drifted into arguments over unrelated issues. At the close of trading, the KSE-100 index stood down 4.75 points (0.01 per cent) to 40,869.28.
Traders were expecting some recovery after the heavy fall of index by 1.32pc a day ago but there was nothing to boost investor sentiments. On the contrary, panic gripped the market as traders were glued to TV screens, watching the militant attack on Chinese consulate and the forces’ response. The index plunged to intraday low by 219 points before recovery in the second session.
There were several other disconcerting factors according to Intermarket Securities, including the onset of roll-over week for futures contract from Monday, MSCI related outflows from passive funds due to upcoming rebalancing and expectations of another rate hike in the next monetary policy.
Trading volume, which has been on the decline since last several sessions, turned anaemic at 124 million shares — down 23 pc, over 160m shares from a day ago. Traded value also dipped 13pc to Rs7.08 billion.
Exploration and production sector was the leading laggard, giving away 94 points as international oil prices scaled down further during the day. Other sectors that lost values included fertiliser, lower by 45 points, oil and gas marketing companies 23 points, tobacco 13 points and automobile 12 points.
On the other hand, cement ran ahead contributing 111 points and banks followed with gains of 46 points on anticipation of policy rate rise. Scrip-wise, major contribution to the downside came from Pakistan Petroleum, decreasing by 1.77pc, Pakistan Oilfields 2.32pc, Oil and Gas Development Company 1.34pc, Engro Fertiliser 2.27pc and Pakistan State Oil 1.95pc.
Published in Dawn, November 24th, 2018
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