KARACHI: The market opened firm for the second day on perception of receding hostilities between Pakistan and India. However, investors were spooked by the midday reports that an Indian submarine was detected entering Pakistani waters on Monday night.

The KSE-100 index wrapped up trading with minor loss of 61.24 points (0.15 per cent) at 39,688.51. The market took off with a gain of 25 points and surged to intraday high by 205 points, before succumbing to selling pressure by mutual funds, banks and individuals. Foreign investors also sold off equity worth $0.89m.

Mid-session, index had hit intraday low by 151 points. There were no positive triggers to support the market. On the contrary, cement despatches figures for Feb’19 stood out at 3.32 million tonnes, recording a decline of 12pc over same month last year which raised concerns of slower economic activity.

The volume declined slightly from 168m shares to 164m shares while traded value remained the same at $42m. Small-cap scrips remained investors’ choice where Bank of Punjab, K-Electric, and Nishat Chunian were top three transacted stocks with cumulative turnover of 82m shares, making up half of the day’s aggregate volume.

Oil and gas exploration and production, banks and cement were top laggards which together dragged index down by 86 points. The Pakistan Stock Exchange stock closed at its upper limit for second consecutive session as the apex regulator last week allowed foreign investors to hold a maximum 20pc stake.

Scrip-wise, major contribution to the index downside came from Oil and Gas Development Company 0.90pc, Pakistan Petroleum 0.81pc, Pakistan State Oil 1.33pc, United Bank 0.75pc and MCB 0.53pc, cumulatively taking away 68 points. On the flip side, Pakistan Services, up 4.11pc, Dawood Hercules 1.50pc and K-Electric 2.28pc added 41 points.

Published in Dawn, March 6th, 2019