KARACHI: Bears continued to prowl the stock market for the second day, pummelling shares and sending worried investors scurrying to seek the safety of risk-free fixed income securities. The KSE-100 index fell 193.36 points (0.50 per cent) and closed at 38,115.81.

The market was shrouded in a thick blanket of gloom that drove away even value hunters who saw no glimmer of hope. Lack of triggers; the perception of possible delays in negotiations with the IMF, which many thought could continue beyond Christmas holidays just at the staff level; and no projection of plan to overcome the balance of payment problems and dwindling reserves, investors saw investor sentiments sink to new lows.

Some big brokerage house reports offered dire prognosis of a dull market extending to the end of 2019. To add to it all, State Bank data showed 35pc decline in foreign direct investment.

After opening on a deceptive positive note, the index could just make to intraday high by 14 points before it succumbed to selling pressure. Traders tracked the international markets that were mostly on the slippery slope, as global oil prices dipped to one-year low.

The KSE-100 index was dragged below 38,000 key resistance for a brief moment as the market sank to intraday low by 330 points, before recovering some of the losses.

Banks, energy, fertiliser and cement stocks were the major laggards where Habib Bank was down 2.2pc, Pakistan Petroleum 2.3pc, Oil and Gas Development Company 0.4pc, Engro Corporation 0.6pc, MCB 0.2pc, United Bank 0.6, Fauji Fertiliser 0.6pc, Lucky Cement 1.4pc, Pakistan Oilfields 2.7pc and Bank Al Habib 0.7pc, cumulatively took away 189 points.

While the refinery sector gained on the back of lower oil prices with anticipation of positive gross refining margins, oil and gas marketing companies faced selling pressure due to expectation of inventory and foreign exchange losses.

Published in Dawn, December 19th, 2018