KARACHI: Stocks continued to weaken for third day in a row with the KSE-100 index tumbling by 163.04 points (0.42 per cent) and settle at 38,384.72. The three-day decline, which collectively stood at 1.21pc, wiped off much of the heavy gains of 1.42pc made by the index on Monday.

Lukewarm investor interest owing to absence of key triggers; concerns over the economy; possibility of higher inflation in March and expectation of rate hike in the monetary policy due the end of the month; delay in International Monetary Fund package; and noises on the political front all combined to take the toll on the market.

Further, the government hinted limitation on subsidy despite economic emergency declared in key sectors.

The mid-session news of the Supreme Court accepting Rs460 billion settlement offer from Bahria Town Karachi, to be paid over seven years for land occupied in Malir District, sparked activity in cement and steel sectors.

But the investors soon lost interest and the index continued its southbound journey. Selling pressure was seen across the board in banks, cement, steel, fertiliser and oil and gas marketing companies, which dragged the index down to intraday low by 345 points.

The volume declined by a slight 2pc to 81 million shares while traded value slumped 22pc to Rs4.24bn. Stocks that contributed significantly included Bank of Punjab, Pak Elektron, Hub Power, Sui Southern Gas and Worldcall Telecom, which formed 24pc of total turnover.

Sectors contributing to the index downside included fertiliser, lower by 47 points, power 36 points, oil and gas marketing companies 22 points, exploration and production 13 points and cement 12 points.

Major decliners were Hub Power, down 2.10pc, Mari Petroleum 3.31pc, Engro Corporation 0.97pc, Oil and Gas Development Company 0.82pc and Philip Morris Pakistan 5pc, taking away 102 points. On the flip side, Pakistan Oilfields, up 1.70pc, Bank Al Habib 0.94pc and Habib Bank 0.24pc added 37 points.

Published in Dawn, March 22nd, 2019