KARACHI: The stock market repeated performance of a day earlier where the KSE-100 index moved aimlessly in choppy trade the whole day and finally settled with minor decline of 27.62 points (0.07 per cent) at 38,896.49.

The start was positive and the index managed to run up to intraday high by 106 points with major contribution to the turnover coming from small-cap stocks. Bank of Punjab, World Call Telecom and Dewan Cement cumulatively added almost a third to the aggregate volume. The index rebounded after hitting intraday low by 276 points as value hunters swooped to pick up stocks.

The only positive news that spurred activity in the cement sector was the Prime Minister Imran Khan’s statement that that low-cost housing scheme was a step towards poverty reduction as construction activity would help boost 40 allied industries, creating new employment opportunities in the country.

But the investors’ focus shifted quickly to the precarious economic conditions and slower economic growth indicated by decrease in large scale manufacturing numbers for 1HFY19.

Market was concerned over the higher interest rate policy and the delay in IMF programme. Investors also worried over the heavy foreign selling of stocks worth $7.85 million a day ago, wondering if there would be more outflows. However, figures released by the National Clearing Company of Pakistan provided some respite as foreign selling slowed down to net $0.4m.

Meezan Bank hit its lower circuit and traded heavily in ‘off market transactions’ amid heavy discount from the previous session most likely as Noor Financial continues to divest its stake in the bank. Other major losers were Habib Bank, down 1.49pc, MCB 1.27pc, Indus Motor Company 2.43pc and Honda Atlas Cars 4.44pc. On the flip side, Oil and Gas Development Company, up 1.15pc, Habib Metro 3.19pc and Philip Morris Pakistan 4.76pc added 46 points to the index.

Published in Dawn, March 13th, 2019