KARACHI: Stocks succumbed to selling pressure on Thursday as the KSE 100-share index lost 110.16 points and closed at 27,148.52.

There was considerable volatility as the benchmark moved in a wide band of 322 points between the intra-day high and low.

Investors were spooked by the fall in regional markets after the US Federal Reserve comments that interest rates could be raised to at least 1pc, which spread fear of a strong outflow of foreign funds.

However, the statistics released by the National Clearing Company of Pakistan showed an entirely reversed pattern at the KSE with the foreign funds making net investment of $0.07m on Thursday, after two earlier days of net sale of equity.

Sector-wise, foreign interest on Thursday was noted in banking; food and oil & gas. Yet, the major culprit on Thursday was the index heaviest weighted stock OGDC, which fell by Rs5.89, accounting for over 90 points to the aggregate index decline.

The strength of the rupee was a crushing blow for the textile sector where stock prices have been generally on the slide. Nishat Mills dropped by 2.29pc on Thursday to give up all the gains accumulated in 2014.

PSO stood out as the sole performer on Thursday. Analysts at brokerage Next Capital stated that mid day trading saw PSO retreat out of the negative to post an incredible gain of Rs9.22.

As rumours of the government issuing bonds in the upcoming auction for settlement of the circular debt did the round in the market, the PSO scrip climbed as the oil marketing company stands to gain considerably from settlement of receivables from energy companies.

Ahsan Mehanti at Arif Habib Ltd stated that profit-taking was witnessed at KSE on strong rupee appreciation and major fall in global stocks and commodities.

Limited foreign interest and uncertainty over outcome of peace talks with TTP played a catalyst role in bearish sentiments.