KARACHI: The KSE-100 index pulled back by another 57.76 points to settle at 39,400.19 on Tuesday. Investors ran for cover after the overnight developments on the MQM issue, which caused the market to stage a mostly muted performance.

After an initial dip of 80 points, the index clawed back to clock in a high of 0.40 per cent but then retraced intraday gains to trade in the red again. Foreign investors bought equity worth net $1.21 million. Trading volumes declined by 7pc to 173.7m shares, while the value increased by 14pc to Rs8.2bn. K-Electric was the volume leader with change of hands in 13.3m shares.

The market fall was led by activity in heavyweight stocks such as Engro Corporation and D.G. Khan Cement, both of which, on a cumulative basis contributed 35 points to the index decline.

Dealers at Topline Securities pointed out that stocks such as Dewan Cement, Sui Northern Gas Ltd, Sui Southern Gas Ltd and Searle have been removed from future contracts for September due to which those stocks shed between 0.7pc to 1.7pc.

Crude oil prices remained under pressure throughout the session keeping investors away from the E&P sector.

According to analysts at Intermarket Securities, pressure to the downside came on the back of selling in fertilisers and cements. Among fertilisers Engro shed 1.08pc, FFC 0.41pc, Fatima 1.03pc and FFBL 1.87pc.

Cements failed to capitalise on Monday’s gains as DGKC fell 2.07pc, LUCK 0.90pc, CHCC 0.57pc, MLCF 0.22pc and FCCL 0.45pc amid weak sector outlook.

Banks were strong with MCB, HBL and MEBL adding to index gains closing up 1.18pc, 1.19pc and 3.34pc respectively. Autos, steel and power staged a mixed session.

Published in Dawn, August 24th, 2016