KARACHI: Stocks recorded extended fall for the second day with the KSE-100 index taking a deeper plunge of 308.83 points (0.91 per cent) and close at 33,539.85. The market capitalisation eroded by Rs57 billion and stood at Rs6.39 trillion.

The index oscillated between the intraday high and low by 71 points and 377 points with reduced turnover which was mostly seen in the second and third-tier scrips. Jitters caused by the announcement of Baloch National Party President Sardar Akhtar Mengal of quitting the PTI-led alliance in the federal government threatening the coalition, unnerved the market.

Investors preferred to book profit and seek the shelter of the money market where the dollar was on the rise against the rupee. They were also spooked by the mounting cases of Covid-19 with Sindh reporting the biggest single day jump in fatalities as the nationwide death toll from the novel virus rose to 3,100. Authorities also announced a lockdown for two weeks starting 7pm on Thursday in emerging hotspots in Karachi, which covers most of the city including some industrial areas.

The depressing number of Large Scale Manufacturing, depicting decline of 32.85pc on monthly and 41.89pc on yearly basis, were feared to further deteriorate as industrial production suffers in the wake of another round of lockdown in Karachi, after earlier shutdowns in the Punjab.

The volume dropped 37pc to 216.2 million shares, from 340.8m while traded value also declined by 36pc to reach $38.9m. Vanaspati sector scrip Unity Foods Ltd was the leader for the second day with its stock price declining on announcement of right shares, in order to meet the increased working capital requirements.

Sectors contributing to the performance included banks, lower by 86 points, fertiliser 59 points, power 49 points, exploration and production 36 points and oil marketing companies 24 points. Among stocks, key laggards were Engro Corporation, down 0.6pc, Fauji Fertiliser 1.3pc, Oil and Gas Development Company 0.6pc, Hub Power 2.8pc, MCB 0.5pc, Pakistan Petroleum 1.2pc and Lucky Cement 0.7pc.

Published in Dawn, June 19th, 2020