KARACHI: Mimicking the earlier day’s start to the market, bulls took charge with the index posting hefty gains. However, the benchmark closed in the red by 85.97 points at 40,473.18.

Expecting a repeat of the Tuesday’s massive rally, investors scrambled to buy current favourite stocks on the exploration and production (E&P), banks and fertiliser sector which sent the index flying to intraday high by 559 points.

But the benchmark succumbed to heavy profit-taking later as investors thought it prudent to quit before anticipated cooling at intraday high level of 41,119. The retreating bulls took away all the day’s gains and dragged the index down to intraday low by 169 points, before some slight recovery around the close.

E&Ps led the losers, regardless of rise in international oil prices. Traders said the market also awaited the Supreme Court’s reserved judgment on Gas Infrastructure Develo­pment Cess to be announced on Thursday which also impacted investors’ sentiments in the fertiliser sector. The results season having kicked off, companies have started to release financial figures with the impact seen on related stock performances.

For the second day, foreigners stood out as the major buyers with equity purchases worth $1.35 million. It was in addition to foreign buying of shares valued at $3.84m a day ago. Traded value stood down 10pc over the previous day to $133m while volume edged lower 2pc to 591m shares.

High turnover came from Hascol, TRG, Pakistan Refi­nery, Maple Leaf Cement, Unity Foods and Worldcall. Oil and gas marketing companies (O&GMCs) topped the chart with 105.1m shares changing hands.

Sectors contributing to the day’s dull performance included cement, down 57 points, O&GMCs 33 points, E&P 29 points, pharma 19 points and inv banks 18 points.

Among scrips, Lucky Cement, declining by 0.9pc, Pioneer Cement 4.1pc, Cherat Cement 2.2pc, Pakkistan Oilfields 0.8pc, Pakistan Petroleum 1.1pc, Dawood Hercules 1.5pc and Pakistan State Oil 1.6pc dragged down the index.

Published in Dawn, August 13th, 2020