KARACHI: The first day of the week marked a depressingly dull session at the stock market where traders took time off and the KSE-100 index fell 276.49 points (0.72 per cent) to close at 38,309.17.

The market opened weak and with the investors displaying hardly any interest, the traded volumes sank to 67 million shares – the lowest in 129 sessions (since Jun 1). Traded value also dipped deeper to just Rs2.78 billion, representing the lowest in 140 sessions since May 17.

Brokers tried to cheer the market through positive talks of Chinese aid of $2bn just around the corner followed by attainment of $6bn facility from Saudi Arabia likely in January. The dollar inflows would ease off the pressure on the rupee, the SBP governor Tariq Bajwa was quoted to have said.

But none of that could give fillip to investors’ optimism who still groped for triggers, such as the government’s plan of long-term economic management.

“Besides, bearish outlook on Financial Action Task Force, FTSE rebalancing concerns and doubts on the International Monetary Fund programme kept the investors at bay and in fact caused them to book profit,” stated analysts at Arif Habib Ltd.

Day traders continued to punt in small-cap stocks while institutions either stood on the sidelines or reduced their positions which saw the index spiral down to intraday low by 382 points. Foreign outflow of $0.91m was seen mainly from selected blue-chip stocks.

Sector-wise, commercial banks, energy and fertiliser stocks were the major laggards as Habib Bank fell 3.3pc, Fauji Fertiliser 2pc, Pakistan Petroleum 1.4pc, Engro Fertilisers 1.6pc, Engro Fertiliser 0.7pc, United Bank 1pc, Oil and Gas Development Company 0.5pc and Hub Power 0.6pc, cumulatively taking away 188 points. On the flip side, K-Electric was up 2.65pc, while Matco Foods closed at its upper cap for second consecutive session.

Published in Dawn, December 18th, 2018