KARACHI: For the second day, activity at the stock market remained dull in the absence of market moving triggers. Uncertainty over the International Monetary Fund bailout, expectation of higher inflation in March, local political fever and weak sentiments pushed the KSE-100 index to a range-bound choppy session. The index shed 64.61 points (0.17 per cent) and closed at 38,547.76.

After an initial uptick by 54 points, the index dropped in the red and lingered in a narrow band throughout the session. The volume increased by 17pc to 83.1 million shares, while the traded value was up 9pc to $248m. Stocks that contributed significantly included PTCL, Bank of Punjab, Worldcall Telecom, Pak Elektron and Dewan Cement, which accounted for 41pcof total volume.

Sectors that dragged down the index down included power, lower by 50 points and oil and gas marketing companies by 39 points. Fertiliser gave strong performance with addition of 46 points followed by banks adding 36 points.

Fertiliser outperformed on the back of recent hike in urea prices by Fauji Fertiliser and successful sync by Engro Thar Power. Sui Companies declined by around 4pc after decision of federal cabinet to reimburse Rs2.5bn to the gas consumers who received inflated bills. ‘’It is likely to create cash flow constraints for both companies,” analysts reckoned.

On the news front, Water and Power Development Authority announced Mohmand dam’s ground breaking for next week which helped most cement shares close in the green. Pakistan Oxygen hit its second upper lock after announcement of expansions worth Rs5bn.

Scrips that witnessed major profit-taking included Hub Power, lower by 2.88pc, Sui Northern Gas Pipelines 4.27pc, Sui Southern Gas 4.04pc, Searle Company 1.27pc, Shifa International 4.36pc, Philip Morris Pakistan 5pc, GlaxoSmithKline 2.88pc and Engro Foods 1.45pc. On the flip side, Engro Corporation, up 1.87pc and Pakistan Petroleum 0.67pc added 50 points.

Published in Dawn, March 21st, 2019