KARACHI: On the first trading day of May, equities remained under pressure with the KSE-100 index taking a plunge of 236.81 points (0.64 per cent) and settle at 36,547.

It marked the third consecutive session of index closing in the red. Having lost 1,570 points or 4.1pc in April, it was yet too early to say if the investors would follow the adage: “Sell in May and go away.”

Mutual funds liquidated portfolio worth $1.44m in line with their recent selling spree but several brokerage houses were trying to sell optimism. As there were no reliable reports on negotiations with the International Monetary Fund, except assertion by Finance Adviser Dr Hafeez Shaikh that he was hopeful of successful conclusion to bailout package, investors decided to remain cautious.

The market’s concerns centred on key economic issues, including the amnesty scheme, the upcoming budget and international lenders’ conditions including possible hike in power and gas tariffs.

The index remained in the red for most part of the day to show intraday low by 276 points. For a brief period, it hit the intraday high by 73 points. Trading activity remained dull with volume down over the previous session by 39pc to 67.9 million shares. Unity Foods, Fauji Foods and Maple Leaf Cement were the market leaders. Traded value also declined 46pc to Rs2.47 billion.

Sector-wise, major laggards were banks, food and power which together pulled the index down by 129 points. Lucky, down 0.3pc, and DG Khan Cement 0.5pc closed in the red in cement sector.

Among scrips, major contribution to the index downside came from Nestle Pakistan, decreasing by 5pc, Hub Power 2.23pc, Habib Bank 0.93pc, Pakistan State Oil 2.16pc and Meezan Bank 1.92pc, taking away 115 points. On the flip side, Engro Corporation, up 0.43pc, Pak Suzuki 5pc and Kohinorr Textile Mills 3.43pc added 20 points.

Published in Dawn, May 3rd, 2019