KARACHI: The stock market could not maintain the upward momentum on Monday and the KSE-100 index fell 104.36 points (0.28 per cent) to close at 37,026.27.
The market took off to a positive start with the index making intraday gains of 307 points, mainly due to cement stocks on reports of price rise. However, late rumours of failure of talks among cement manufacturers caused panic selling by investors that resulted in index sliding into the negative territory, touching the intraday low by 181 points.
The market also lost steam after investors’ concerns mounted on the possible conditions attached to the International Monetary Fund package, its timing and the risk of higher taxation in the upcoming budget. Some encouraging reports from prime minister’s visit to China also could not lift investor sentiments.
Dozens of companies came up with results for the quarter ended March 31. The volume increased 23pc to 177 million shares, from 144m while traded value jumped by 22pc to $44.8m as against $36.7m. Stocks that contributed significantly included Pakistan International Bulk Terminal (PIBT), Pak Elektron, Bank of Punjab, Fauji Cement and K-Electric, which formed 32pc of volume.
Major sentiment dampener turned out to be exploration and production that saw heavy selling in all scrips on the back of falling international oil prices. Fauji Foods closed lower after material information released in which company stated that Inner Mongolia Yili Industrial Group was withdrawing its intention to acquire up to 51pc shares as they are unable to reach an agreement
Major contribution to the index downside came from Pakistan Petroleum, decreasing by 2.23pc, Oil and Gas Development Company 1.71pc, Pakistan Oilfields 1.91pc, Engro Corporation 0.94pc and Lucky Cement 1.16pc, taking away 134 points. On the flip side, PIBTL grew 10.19pc, Habib Bank 0.83pc and Habib Metro 2.59pc added 46 points.
Published in Dawn, April 30th, 2019
