KARACHI: After a relief rally that lasted for no more than a day, the stocks on Friday again slumped where the KSE-100 index sank 354.46 points (0.85 per cent) to close at 41,436.70.

The benchmark index traded in red throughout the first session amid thin participation but it extended losses in the second session on renewed profit-taking, which wiped out much of the gains it made in the week.

Besides, the louder noise on the political front, the gloomy picture of the country’s macroeconomic indicators painted by the World Bank report, poured cold water on investor sentiments.

Although mutual funds were again lead buyers of stocks worth $2.41m, the euphoria over the waiver of SECP’s requirement on mutual funds cash margins seemed to have died down.

Arif Habib Research stated that the concerns about downward revision in upcoming MSCI review on the Nov 13 also seemed to play its role in spoiling the market mood.

The volume declined to 128m shares from 162m shares a day ago. Low investor participation was attributed to the Chehlum of Imam Hussain when mobile services also remain suspended throughout the day. The activity was almost entirely concentrated in low-valued, side-board stocks. Azgard Nine and Dost Steels together contributed 37m shares or 30pc to the entire market turnover.

Major laggards of the day were Engro Corp lost 2.69pc, Lucky Cement 3.18pc, HBL 1.35pc, PPL 1.27pc and UBL 1.39pc, scrapping 177 points from the index.

Selling pressure was witnessed in the cement sector where DGKC fell 2.34pc, DCL 2pc and MLCF 0.62pc. Commercial banks dragged down the index by 62 points.

Published in Dawn, November 11th, 2017