KARACHI: The stock market closed about flat with a minor gain of 33.67 points (0.08 per cent) at 40,276.93.Investor participation remained thin as five-month low volume of just 100 million shares was recorded.

Participants generally remained on the sidelines as they await the Financial Action Task Force verdict on Pakistan in the ongoing plenary meeting in Paris. Analysts are divided on the possible decision, though most believe that the country would remain in the grey list.

“Any positive surprise would be a major sentiment booster,” said a stock broker. Moreover, a press release by the Ministry of Finance clarified that contrary to media speculation, “tough prior actions” were not needed for the International Monetary Fund’s $452m third tranche and asserted that “the government’s reform programme supported by the IMF’s Extended Fund Facility is on track.”

The index traded between intraday high and low by 278 and 195 points. The volume stood at 99.8m shares, representing 15pc decline from 117.6m shares while traded value slipped 16pc to $28.4m.

Sector-wise, selling pressure was seen in the exploration and production, fertiliser, cement and oil and gas marketing companies. Banks also succumbed to selling pressure.

Habib Bank said in a statutory filing with the exchange that it would complete the voluntary closure of New York branch by Mar 31 in coordination with the regulations there. Investors reacted negatively to the news early in the day, but the share in HBL recovered and rose to close near the upper circuit as realisation dawned that it would settle the matter and lift the threat of further punitive action from US regulators.

The gaining scrips were led by Habib Bank, up 4.2pc, Pakistan State Oil 1.7pc, Kot Addu 6.5pc and Pakistan Oilfields 0.4pc, which cumulatively contributed 138 points to the positive index close.

Published in Dawn, February 18th, 2020