KARACHI: Stocks snapped the five-day winning streak on Friday as the KSE-100 index pulled back by 24.38 points (0.06 per cent) and closed at 40,264.78.

As the early euphoria over the acceptance of most of the broker demands died down, investors got into serious thinking over the Economic Reforms Package announced by the Finance Minister Asad Umar on Wednesday.

While most of the positives had been priced over the last three weeks that saw the market gain 9pc, investors worried over International Monetary Fund reaction which might consider less than required measures taken to address pressing issues like fiscal deficit and circular debt.

The index traded between the intraday high and low of 91 points and 123 points in choppy trade as traders engaged in alternative bouts of buying and profit-taking. The State Bank of Pakistan (SBP) confirmed that the country has received $1 billion from UAE to help bridge current account deficit, which improved sentiments.

Total volume dipped 37pc to 156 million shares, from 246m. Bank of Punjab and Pakistan International Bulk Terminal were the leaders with almost 44m shares changing hands. Investors’ interest was witnessed in HBL and UBL in banking, which cumulatively contributed 63 points to the index. Cement witnessed profit-booking where Fauji, Pioneer, DG Khan, Cherat and Lucky Cement lost values to finish in the red .

“Stocks closed lower on uncertainty over economic outcome of concessions in the mini-budget while the receipt of $1bn support from UAE and Gas Infrastructure Develop­ment Cess relief invited support in fertiliser and textile stocks,” stated analyst Ahsan Mehanti.

Major contribution to the index downside came from Oil and Gas Development Company, down 0.91pc, Pakistan Petroleum 0.60pc, Pakistan State Oil 1.48pc, Indus Motor Company 3.06pc and Sui Northern Gas Pipelines 1.95pc, taking away 66 points. On the flip side, United Bank, up 3.19pc, Habib Bank 0.86pc and Fauji Fertiliser Bin Qasim 4.41pc, added 81 points.

Published in Dawn, January 26th, 2019