KARACHI: The stock market was able to plug heavy losses of the day earlier as the KSE-100 index closed flat with a nominal gain of 5.69 points (0.02 per cent) at 37,521.81.

There was another doomsday scenario in early trade when the index sank to intraday low by 209 points. But the sell-off of shares worth net $1.9 million by foreign investors and offloading of $1.7m by ‘brokers proprietary trading’ were absorbed by insurance companies that scooped up attractively-valued scrips worth $1.42m and individuals net buying valued at $2.2m.

The index managed to regain losses during the day and make to the intraday high by 76 points. The finance minister’s clarification of no further depreciation of the rupee did not entice investors to buy as they remained deeply concerned about the economy and his earlier day’s caution of choosing between “going bankrupt or to the International Monetary Fund.”

Market wondered on what conditions the IMF would be willing to provide the bailout package and its impact on the corporate bottom lines. Moreover, discouraging data came out from the All Pakistan Cement Manufacturers Association (APCMA) as the industry’s total sales down by 7pc.

The volume declined 21pc to 101.7m shares, from Thursday’s 127.9m shares while traded value increased 11pc to $26.6m, from $23.9m. The newly listed Interloop Ltd turned out to be the volume leader, relegating Unity right issue to the second place.

Sector-wise, banks were the major losers of 26 points as several major banking stocks saw profit-taking by investors. Primary contribution to the index upside came from Nestle Pakistan, up 3.26pc, Mari Petroleum 1.43pc, Pakistan Tobacco 1.26pc, Engro Fertilisers 0.85pc and K-Electric 2.55pc, adding 44 points. On the flip side, MCB, down 1.01pc, Kot Addu Power 2.46pc and Habib Bank 0.39pc took away 35 points.

Published in Dawn, April 6th, 2019