KARACHI: In the absence of strong positive triggers, the market on Monday was carried back and forth by the investors speculation over the MSCI decision to be announced on Tuesday.

The KSE-100 index closed at a slight fall of 39 points, or 0.08 per cent, at 46,919.

During the trading, it moved between the intraday low and high of 69 and 130 points. MSCI, the global index provider, had indicated on June 26 that it would announce a decision on Sept 7 after consulting with market participants the option to demote Pakistan back to frontier markets (FM) from emerging markets (EM) since the number of companies in Pakistan index that met the size and liquidity criterion for placement on the MSCI EM was below the minimum of three.

As the PSX discussed the pros and cons of re-entry in the frontier market, the first signs that it could speed up the sell-off by foreign investors was provided on Monday by foreign portfolio outflow worth a hefty $3.41m. Banks also hastened to sell, but insurance companies thought it was the best time to buy, picking up shares valued at $3.91m.

Traders said that the massive trade deficit (120pc year-on-year), swelling CPI numbers, weakening rupee and uncertainty over the Covid situation also poured cold water over investor sentiments.

Further, the cement dispatches in August increased by 22.77pc to 4.3m tonnes from 3.531m tonnes in the same month last fiscal year, turned out to be lower than investors’ expectations which triggered profit-taking in cement stocks.

Selling pressure was also seen in the banking sector where big ticket, UBL and HBL closed in the red. The Refinery Policy 2021 still out of sight, Attock Refinery; National Refinery and Byco came under hammering.

The trading volume down by 10pc to 418m shares. TPL with 60m shares was the volume leader. Sector-wise, brisk trading was seen in the technology & communications; textile spinning and miscellaneous sectors.

Published in Dawn, September 7th, 2021