KARACHI: Stocks drifted downwards for the fifth straight session where the KSE-100 index plunged 262.40 points (0.65 per cent) to settle below the 40,000 level after 18 sessions, at 39,957.07.
Regardless of the billions of dollar worth of memoranda of understanding signed with Saudi Arabia the other day which represented the promise of improvement in economic situation, traders had geopolitical concerns on their mind amid growing tensions in Indo-Pakistan relationship.
In response to the Indian rhetoric, Prime minister Imran Khan spoke up, pledging a befitting reply to any misadventure on the part of India. Investors also weighed the economic consequences of escalation in hostilities between the two countries as India had scaled up tariffs on imports from Pakistan and withdrew the Most Favoured Nation status.
Other issues that put off investors included the delays in the entry into the International Monetary Fund programme; review of Pakistan’s performance by the Financial Action Task Force and the ongoing being roll over week for the future contracts.
The market started on a sideways note and moved within the range of intra-day high and low by 101 and 277 points respectively to finally close near the intra-day lows. Activity further slowed down with the traded volume decreasing by 5pc to 94 million shares and traded value dropping by 19pc to Rs3.85 billion.
Stocks that contributed significantly to the volumes include K-Electric, Siddiqsons Tin and Plate Ltd, Pak Elektron, Pakistan Int. Bulk Terminal Ltd and Pakistan Telecommunication Company Ltd, which formed 32pc of total volumes.
Commercial banks, fertiliser and oil and gas exploration companies dragged the index down by 153 points, cumulatively. Heavyweight energy stocks, Pakistan Oilfields (POL) and Pakistan Petroleum (PPL) also finished weak. Mixed sentiments were witnessed in cements.
PPL was down 0.4pc, Habib Bank Ltd 2.2pc, Oil and Gas Development Company 0.3pc, Engro Corporation 0.3pc, Hub Power Company 0.3pc, Fauji Fertiliser Company 0.1pc, United Bank Ltd 1.1pc, and POL 0.9pc were the top laggards that cumulatively took away 104 points from the final tally. On the flip side, Lucky Cement closed the session up 0.94pc adding 12 points.
Published in Dawn, February 20th, 2019
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