KARACHI: Share prices dropped sharply on Friday owing to monetary tightening and inflationary concerns following the second increase of Rs30 a litre in petrol and diesel prices.

According to Arif Habib Ltd, the stock market opened in the negative zone and remained under pressure throughout the day as investors opted for profit-selling over uncertain economic conditions.

Topline Securities said the decline in foreign exchange reserves held by the central bank by $377 million to $9.7 billion also weighed down on investors’ sentiments.

As a result, the KSE-100 index settled at 41,314.88 points, down 923 points or 2.19pc from a day ago.

The trading volume increased 43.6pc to 225.4m shares while the traded value went up 13.3pc to $30.3m on a day-on-day basis.

Stocks contributing significantly to the traded volume included K-Electric Ltd (30m shares), Pakistan Refinery Ltd (21.7m shares), Cnergyico PK Ltd (20.2m shares), Pak Elektron Ltd (10m shares) and Pakistan International Bulk Terminal Ltd (8.5m shares).

Sectors that took away the highest number of points from the benchmark index included commercial banking (176.49 points), cement (130.49 points), fertiliser (96.26 points), technology and communication (79.33 points) and oil and gas exploration (76.42 points).

Shares contributing most negatively to the index included Millat Tractors Ltd (68.46 points), Habib Bank Ltd (53.78 points), Fauji Fertiliser Company Ltd (46.21 points), Lucky Cement Ltd (45.02 points) and the Hub Power Company Ltd (35.42 points).

Stocks that contributed most positively to the index included Indus Motor Company Ltd (20.98 points), Colgate-Palmolive Pakistan Ltd (7.22 points), Atlas Honda Ltd (2.16 points), Adamjee Insurance Company Ltd (0.74 points) and Attock Petroleum Ltd (0.49 points).

Stocks that registered the largest declines in percentage terms were Pakistan International Bulk Terminal Ltd (7.63pc), Maple Leaf Cement Factory Ltd (7.1pc), D.G. Khan Cement Company Ltd (6.59pc), Pakistan Stock Exchange Ltd (6.51pc) and Attock Refinery Ltd (6.35pc).

Foreign sellers were net buyers as they purchased shares worth $1.77m.

Published in Dawn, June 4th, 2022