KARACHI: Correction at the stock market continued on Tuesday with the KSE-100 index dipping lightly into the red by 47.10 points, or 0.10 per cent, and closing at 46,674.77.

When the market opened the index managed to forge ahead to intraday high by 269 points and reach 46,992 points; the 47,000 proving yet again a stiff resistance.

The early gains to the market were provided by the technology, refineries and oil & gas marketing sectors. The E&P scrips were also all green right from the start as international oil prices mounted to a 13-month high on optimism of a quicker rebound in global economy. Mari Petroleum, Oil and Gas Development Company Ltd, Pakistan Oilfield and Pakistan Petroleum took the market forward.

The power sector also performed well on expectation of finalisation of OMC and Power Policy by the government.

Major stocks of the sector Hub Power Co and Kot Addu Power remained positive. But for all that, the index succumbed to selling pressure later in the day as investors could not be fed positive news to sustain their interest.

Traders said investors were awaiting the MSCI quarterly review to be disclosed on Wednesday. The major worry on the investors’ minds was also in regard to the FATF review later in the month. The index fell to intra-day low by 93 points.

Banking sector continued to stay subdued. The shares in banks could not see major breakout regardless of anticipation of healthy earnings and the potential declaration of dividends.

Foreign investors sold shares worth $1.68m; banks and brokers also liquidated positions. Yet the liquidity was successfully mopped up by individuals who bought stocks of $4.67m. Mutual funds and insurance companies also picked up shares at dips.

Scrips that contributed positively to the index included POL, PSO, Kapco, MEBL and ATRL. On the flip side, shares that dragged the index down were UBL, HBL, MCB and Engro. The traded volume increased by a sizeable 55pc over the previous day to 664m shares. The traded value was also was up by 28pc to Rs28.4bn.

Published in Dawn, February 10th, 2021