Stocks snap eight-day rally

Updated November 13, 2019

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Stocks ran into profit-taking after nervousness seeped in of an over-bought market as in the eight straight sessions until Monday, the KSE-100 index had risen by a massive 3,042 points or nine per cent.  — AFP/File
Stocks ran into profit-taking after nervousness seeped in of an over-bought market as in the eight straight sessions until Monday, the KSE-100 index had risen by a massive 3,042 points or nine per cent. — AFP/File

KARACHI: Stocks ran into profit-taking after nervousness seeped in of an over-bought market as in the eight straight sessions until Monday, the KSE-100 index had risen by a massive 3,042 points or nine per cent.

On Tuesday the market opened in the positive zone over the past momentum and climbed swiftly to intraday high by 368 points. But the index retreated to sink in the negative touching intraday low of 131 points. Late in the day, it bounced back to close slightly in the red by 37.54 points (0.10pc) at 36,765.56.

Traders said that the investors risk appetite may have also diminished as the Index was close to the resistance of 37,000 level. On the political front, the opposition’s Islamabad sit-in and the JUI (F) chief’s talk of plan ‘B’ to topple the government kept the investors’ anxiety at a high pitch.

They also kept track of the events that could either lead to or deny the former ailing prime minister Nawaz Sharif to fly abroad for treatment.

On the economic side, the government’s announcement of Rs360 billion support package for exports, power sector and low-cost housing scheme were considered a positive, leading the cement stocks to again close with ample gains DG Khan, Pioneer, Cherat and Maple Leaf were all up. Among steel scrips, International, Amreli and Mughal also witnessed heavy volume and positive closing.

Banking, fertiliser and chemical sectors largely performed negative and were further joined by exploration and production and oil marketing companies, which saw selling pressure by the end of the session.

Foreigners bought shares worth $1.22 million. Among local participants, individuals continued to accumulate second-tier stocks of $5.08m while mutual funds were major sellers of shares valued at $5.06m.

Leading gainers were Hub Power, higher by 3.38pc, Indus Motor 4.75pc, Kot Addu Power 4.18pc, TRG Pakistan 5.42pc and DG Khan Cement 3.62pc while the laggards included Fauji Fertiliser, down 2.30pc, Dawood Hercules 2.48pc, Engro Fertilisers 2.41pc, Pakistan Oilfields 1.65pc and MCB 1.08pc.

Published in Dawn, November 13th, 2019