KARACHI: Stocks extended the decline on Wednesday with the KSE-100 index losing another 209.14 points or 0.68 per cent to close at 30,667.14.

Market saw intense volatility as it traded in the band of 579 points, climbing initially by 266 points and plunging later by 313 points intra-day.

The KSE was hit by net selling by foreign investors in the huge sum of $19.42 million on Wednesday, including which the month-to-date foreign outflow stood at $52.75m.

It was exacerbated by the perceived mandatory selling, by a major Islamic Bank, of five heavyweight oil and gas sector stocks, being Shariah non-compliant.

All 13 listed stocks on the oil and gas sector ended in the red on Wednesday.

Volumes declined to 199m shares, from 263m shares traded the previous day.

“Continuous selling by for eigners in the last few sessions kept local investors on the sidelines,” said Samar Iqbal AVP Equity Sales at Topline Securities.

Textile companies closed at lower limit fearing that the government lifting of a ban on capital punishments may affect GSP+ benefits, the analyst added.

Most brokers said that the market was taking a plunge in line with global trend as crude continued to recede below $56 per barrel.

Analyst Fahad Hussain Khan at Adam Securities commented that the future of GSP+ status, depressed oil prices, bears domination in international equity markets and surge in Foreign Direct Investment (FDI) forced the index to move either way.

Soaring FDI by 19pc in July-Nov coupled with unity shown by all political parties against terrorism helped the bulls to hit the intra-day high 31,141, he stated.

Analyst Arhum Ghous at JS Global stated that as the textile sector remained under pressure due to rumours in the market of losing GSP+ status, NCL, GATM and NML hit their lower circuits.

KEL escalated 5.7pc as the company plans to invest $2 billion in the power sector during the next three years.

Published in Dawn December 18th , 2014