KARACHI: The stock market saw directionless trading on first day of the week in the absence of triggers. The KSE-100 index shed 97.73 points (0.24 per cent) and closed at 40,771.55.

While investors were peeved over the lack of information regarding financial assistance package from China and breaking of ice with the International Monetary Fund due to stringent conditions, any adventure at taking long positions was thwarted by the events ahead. Those included the onset of the rollover week for future contracts, unabated foreign selling, sharp fall in international crude prices and upcoming monetary policy on Nov 30 with general expectations of interest rate hike by 100 basis points.

Analysts at Arif Habib Ltd, however, cautioned: ”With significant decline in crude prices, State Bank’s expected interest rate hike on looks distant possibility that shrouds banking sector scrips.” In addition, decline in commodity prices was thought to expose refinery, steel and oil marketing companies to inventory losses.

The index was off to a good start, hitting intraday high by 275 points within the first hour. However, mixed outlook triggered profit-taking with the index dropping to intraday low by 205 points Investors were nonetheless betting on rate hike which pushed banks’ shares up by 71 points as Habib Bank, United Bank and MCB closed in green. Cement took away 52 points with Lucky, Maple Leaf, Cherat and Fauji Cement ending in red.

Traded volume increased by 10pc over the previous session to 135 million shares while traded value edged up 2pc to Rs6.91 billion. It was the small cap stocks that dominated trading.

Major contribution to the index downside came from Lucky Cement, down 2.18pc, Oil and Gas Development Company 0.77pc, Pakistan State Oil 1.42pc, TRG Pakistan 4.41pc and Philip Morris Pakistan 5pc, scrapping off 86 points. On the flip side, Habib Bank, up 1.56pc, Colgate-Palmolive Pakistan 4.73pc and Pakistan Tobacco 1.93pc added 59 points.

Published in Dawn, November 27th, 2018