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KARACHI: After a brief period of positivity in early trade, stocks retreated on Tuesday, ceding a big chunk of gains a day earlier as investors opted to book profit on lack of triggers; falling remittances; gas shortage problems; and worries over the country’s economic situation.
All of that poured cold water over the enthusiasm that was generated after the government’s nod to some of the major demands of the stock exchange on Sunday. The KSE-100 index lost 447.67 points (1.14 per cent) and closed at 38,851.96 after trading in the red for most of the day.
The stocks succumbed to selling pressure mainly from the foreign investors who sold stocks worth $3.75 million. However, it was a relief to see an end to sell-off by mutual funds that absorbed $1.81m of liquidity.
Other institutions and individuals generally stood on the sidelines, which was represented by the decrease in volume by 20pc to 124m shares. Traded value also declined by 12pc to Rs5.85 billion. Stocks that contributed significantly included Pak Elektron, Amreli Steels, K-Electric, Siddiqsons Tin Plate and DG Khan Cement, reflecting 30pc of total turnover.
Among sectors, banks conceded 134 points, exploration and production 80 points, fertiliser 67 points, oil and gas marketing companies 48 points and power 42 points.
Early in the session, the news of Supreme Court’s removal of ban on construction of high-rise buildings in Karachi — with orders to construct them in accordance with law — caused a stir in cement and engineering sector. Steel stocks rose while cement shares also found some traction with both Lucky and DG Khan Cement closing with gains.
Scrip-wise, Oil and Gas Development Company, down 1.2pc, Habib Bank 2.2pc, Pakistan Petroleum 1.4pc, Hub Power 2.2pc, United Bank 1pc, Engro Corporation 1.4pc and Pakistan Oilfields 1.5pc cumulatively scrapped 178 points off the index.
Published in Dawn, December 12th, 2018
