KARACHI: Lacklustre trading continued on the stock market where for most of the day, the index moved sideways. The KSE-100 index closed with a loss of 138 points (0.34 per cent) at 40,514.67, wiping out much of the small gains made the previous day. Index touched intra-day low by 308 points.

Investors worried over the mounting cases of Covid-19 world-wide and the uptick in local cases with higher number of daily deaths from the virus. Uncertainty over the political situation did not fade out with the end to the Gilgit-Baltistan elections as the opposition announced defiance over the ban on public meetings, imposed by the government to curb spread of pandemic.

Investors’ concerns were redoubled by the resumption of the International Monetary Fund (IMF) package, which requires an upward adjustment in electricity tariff as well as curtailment of subsidies.

Volumes were 5pc lower than earlier day at 145.9 million shares. Traded value declined by 2pc day-on-day to reach $39.1m. Hayat Khan, equity trader at BMA Capital Management pointed out that the volumes were 61pc lower than the CY20 to-date average daily volumes of 203m shares. He reckoned that the market could remain range bound going forward.

“The upcoming week would be futures rollover week and the announcement of the State Bank of Pakistan monetary policy was also due,” he said.

Analysts at JS Global said that the positive development was witnessed in the steel sector on back of reports of the Pakistan Association of Large Steel Producers asking the government to take note of duty-free imports of steel products by the companies affiliated with the China-Pakistan Economic Corridor projects in sheer violence of rules and regulation. Steel stocks including International Steel Ltd, Amreli Steel Ltd, Mughal Ltd and Aisha Steel Ltd closed in the green.

There was a surge of activity in the refineries, which for a moment saw all stocks in the green before receding down. Banks, exploration & production, cement, oil and gas marketing companies and fertilisers plunged. Although the international crude oil prices went up by 1pc during the session, local E&P companies failed to take notice and wound up with loses.

Stocks that contributed positively to the index included MCB Bank Ltd, TRG Pakistan Ltd, International Steel Ltd, Meezan Bank Ltd and Fauji Fertiliser Company. Stocks that contributed negatively included Habib Bank Ltd, Pakistan Petroleum Ltd, Engro Corporation, Pakistan State Oil and Pakistan Oilfields Ltd. In the technology sector Avanceon, TRG rose while Netsol hit the upper circuit.

Published in Dawn, November 19th, 2020