KARACHI: Stocks extended their downward drift for the second consecutive day with the KSE-100 index losing 120.41 points (0.30 per cent) and close at 39,568.10.

Market opened in the positive territory and as individuals lapped up Bank of Punjab and K-Electric stocks, the volume came up to just a half of the earlier day According to figures released by the National Clearing Company, major buying of $2.13m came from individuals followed by insurance companies which increased stakes by $1.62m. Foreign investors were net sellers of shares valued at $0.69m.

The trading remained choppy with the index oscillating between the intraday high and low by 157 and 194 points. In the face of uncertain turn of events on the geopolitical front, state of the economy and the speculations over the International Monetary Fund bailout package, value investors and institutions put off buying to a later date.

Market also showed concern over the warning by finance secretary regarding the possibility of Pakistan facing economic sanctions due to non-implementation of Financial Action Task Force (FATF) recommendations. But optimists who chose to build positions at dips thought that the war clouds with India had dissipated.

The volume continued to decline for the fifth session with the turnover of Wednesday at anaemic 81m shares, down 50pc from the previous day trading in 164 million. Average traded value also declined by 33pc to reach $28m, as against $42m. Bank of Punjab and K-Electric recorded 23m shares of the total volume

Sector-wise, commercial banks took away 62 points and exploration and production 40 points. Scrip-wise, major contribution to the index downside came from Oil and Gas Development Company 1.33pc, Habib Bank 0.95pc, MCB 0.98pc, Pakistan State Oil 1.44pc and Philip Morris Pakistan 4.84pc, which together scrapped 88 points from the index.

Published in Dawn, March 7th, 2019