KARACHI: In continuation of the previous week, stocks bled profusely on Monday as investors’ sentiments hit new low. The KSE-100 index opened positive, before succumbing to heavy selling pressure that dragged it down to intraday low by 783 points. Some value hunting by institutions towards the end saw the index close down by 599.90 points (1.60 per cent) at 36,921.91, which marked the lowest level since October 2018.

Investors remained concerned as more and more potential problems kept piling, in addition to uncertainty on the International Monetary Fund package. World Bank’s report predicted the economic growth rate to decelerate at 3.4pc in FY19 and further to 2.7pc for FY20 while inflation hitting 13pc in that year. It added weight to the grim picture of the economy painted by the Asian Development Bank last week.

To top them, local and geopolitical problems reared their head. Foreign Minister Shah Mahmood Qureshi stating that Delhi was planning military action against Pakistan in late April saw investors flee to seek the safety of fixed income securities.

The brunt of the blow was taken by cement sector on rumours of price declines. Most blue-chip scrips hit lower circuits including Lucky, DG Khan, Maple Leaf, Fauji and Cherat Cement. Sector-wise, cement was the worst performer wiping off 120 points from the index, followed by commercial banks and fertilisers which cumulatively deducted 138 points.

The volume increased 5pc to 106.9 million shares, from 101.7m while traded value jumped 9pc to $28.9m, as against $26.6m. Major contribution to the index downside came from Lucky Cement, decreasing by 4.86pc, Engro Corporation 1.34pc, MCB 1.44pc, Searle Company 4.99pc and Pakistan State Oil 2.84pc, taking away 150 points. On the flip side, Hub Power, up 1.15pc, Habib Bank 0.51pc and Nestle Pakistan 2.60pc added 36 points.

Published in Dawn, April 9th, 2019