KARACHI: The stock market remained dull and drab with the KSE-100 index finishing off lower by a slight 17.27 points (0.04 per cent) and settle at 40,607.12.

Most local institutions and individuals continued to wait on the sidelines while the market moved on with the recent buying spree by the foreign investors as they picked up stocks worth $1.18 million, taking the seven-session net purchases to $21.2m.

The local participants held their breath in anticipation of the State Bank monetary policy to be announced on Thursday. Although consensus suggested no change, the investors did not want to fall prey to an unknown move by the central bank. Investors also remained cautious as the result season had started.

Further reports suggesting that another round of talks between Pakistan and the International Monetary Fund had concluded without a breakthrough also dampened sentiments.

As a result, day traders and speculators continued to churn low-cap stocks in search of minor returns. The index hit the intraday high and low by 153 points and 94 points. According to Arif Habib Ltd, selling was observed across the board in sectors such as food, technology, cement, steel and chemicals.

Among banking stocks, Habib and United Bank also saw selling pressure and traded in red close to the end of session. Fertiliser sector also bore the brunt of negative sentiment and Fauji Fertiliser Bin Qasim, despite posting a decent result, failed to garner support.

The volume declined 19pc to 125m shares while the traded value decreased 28pc to $35.8m. Stocks that contributed significantly included Fauji Foods, Pakis­tan International Airlines, SIddiqsons Tin Plate, Dewan Cement and Hum Network, which formed 29pc of total volume.

Major contribution to the index downside came from Fauji Fertiliser, decreasing by 1.18pc, Engro Corpo­rat­ion 0.78pc, Bank Al Habib 0.70pc, Hub Power 0.46pc and Kohinoor Textile Mills 3.87pc, taking away 60 points.

Published in Dawn, January 31st, 2019