Stocks shed 91 points amid lack of triggers
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KARACHI: Stocks retreated on Wednesday with the KSE-100 index displaying moderate loss of 90.85 points (0.24 per cent) and close at 38,218.07.
Participants remained on the sidelines due to lack of triggers, weak macros, ambiguity on Chinese financial assistance, reports of stalemate in talks with International Monetary Fund and the rise of political temperature in the country.
The index started off sideways and the index managed to keep its head above the 38,000 resistance at close. Uncertainty over the future forced investors to wait and watch before taking a plunge in fresh buying.
The market tracked the sharp decline in international crude prices and the meltdown in developed markets. The drop in oil prices dragged exploration and production stocks in the red towards the end.
Habib, United Bank, DG Khan, Lucky and Maple Leaf Cement — the affected stocks last week due to FTSE rebalancing fears — traded within a narrow band. Rumours of increase in cement prices in North made rounds during the session, but they failed to make a serious impact on the upward revision in cement prices.
The volume increased 19pc over the last session to 88.3m shares while the average traded value rose by 11pc to Rs3.76 billion. Second-tier stocks K-Electric, Amreli Steels, Sui Northern Gas Pipelines Ltd (SNGPL), and Dost Steel contributed 33pc to aggregate turnover.
Sectors contributing to dismal performance included exploration and production, decreasing by 83 points, banks 77 points, autos 15 points, food 12 points while tobacco added 23 points.
Scrip-wise, major decliners were Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum. Other laggards included United Bank, down 1.65pc and MCB 1.25pc, taking away 126 points. On the flip side, Habib Bank, up 0.73pc, and Searle Company 3.06pc and Sui Northern Gas Pipelines 2.52pc added 40 points.
Published in Dawn, December 27th, 2018
