KARACHI: As investors remained at sea over the developments in the ongoing negotiations for financial assistance packages from China and the Intern­ational Monetary Fund, activity at the stock market turned out to be dull and drab.

Traders also avoided taking fresh positions as they awaited the decision by Morgan Stanley Capital International (MSCI) semi-annual index review due today (Nov 13). Much of the market believed that the status of United Bank and Lucky Cement — among five local stocks in the MSCI Emerging Market — were under scrutiny. As as a result, the KSE-100 index plunged by 292.55 points (0.71 per cent) and closed at 41,096.33.

On the economic front, the prospect of receiving $1 billion from Saudi Arabia in a day or two did not make quite an impact on sentiments. The market opened positive and the index touched intraday high by 183 points. But by midday, it succumbed to selling pressure as investors started to book profit, which sent the index reeling down to intraday low by 335 points.

Cement, commercial banks and steel were major drags on the index. Cement sector scrapped 103 points as all major scrips including Lucky, Maple Leaf, Cherat, Pioneer and DG Khan Cement closed in the red zone. Fertiliser also did not fare well, giving up 43 points, but investors showed interest in Fauji Fertiliser and Fauji Fertiliser Bin Qasim as both hit their upper circuits.

Overall, volume declined 19pc to 178 million shares while the traded value stood down by 24pc to Rs6.74bn. Stocks that contributed significantly included K-Electric, Lotte Chemical, Siddiqsons Tin Plate, Bank of Punjab and Pakistan International Bulk Terminal, reflecting 36pc of total turnover.

Scrip wise, Lucky Cement lost 3.70pc and United Bank was down 2.16pc, accounting for 90pc of the index losses. Other laggards were Engro, lower by 1.23pc, Nestle Pakistan 5pc and Engro Fertiliser 1.92pc.

Published in Dawn, November 13th, 2018