KARACHI: Stocks snapped the two-day rally on Wednesday as the KSE-100 index shed 130.81 points (0.33 per cent) and closed at 38,921.69.
Trading was choppy with the index climbing to intraday high by 215 points, but pulling back in the second session to intraday low by 236 points.
Investors thought that the euphoria built over the last two sessions on the announcement of $6.2 billion financial assistance package from UAE was overdone.
Institutions who were worried over the bleak economic and corporate earnings outlook decided to book profit. Moreover, the uncertainty over the new taxes in the upcoming supplementary budget spooked participants. But the market’s nervousness over the ongoing deliberations with Financial Action Task Force, where Pakistan is thought to be at risk of being classified blacklisted, sent investors scurrying to sell and seek the safety of fixed return assets.
Early in the session, exploration and production stocks increased significantly on back of higher crude oil prices. On the flip side, fertiliser, decreasing by 32 points, tobacco 22 points, banks 20 points were the laggards.
The volume declined 20pc to 133.7m shares while traded value fell 28pc to reach $42.1m. Stocks that contributed significantly included Pak Elektron, Unity Foods, Sui Southern Gas, TRG Pak and Dewan Cement, which formed 45pc of total turnover.
Investors opted to book profits in the cement sector cement, lower by 43 points, as major players closed in the red.
Scrip-wise, major contribution to the index downside came from Lucky Cement, down 1.76pc, Pakistan Tobacco 2.90pc, Engro Fertilisers 1.29pc, Bank Al Habib 1.00pc and Engro Corporation 0.54pc, taking away 80 points. Meanwhile, Pakistan Oilfields, up 3.27pc, Pakistan Petroleum 0.93pc and Habib Bank 0.80pc added 75 points.
Published in Dawn, January 10th, 2019