KARACHI: The stock market remained subdued for the second consecutive day with the KSE-100 index recording a drop of 253.24 points (0.67 per cent) and close at 37,542.01.

On the economic side, there was no news of any major improvement in macros while the supplementary budget following International Monetary Fund talks kept hanging like a sword of Damocles on the heads. Meanwhile, on the political front, opposition rallied against the government, calling on accountability bureau to probe the award of Mohmand dam construction contract to prime minister’s advisor.

Investors thought it prudent to seek the safety of fixed return assets. The index, after an initial intraday high by 133 points, quickly reversed the trend as profit taking set in. Activity, however, re­­mained thin, measuring up to nearly half of the previous day. “Markets do not like uncertainty and there is plenty of it at the moment,” said a stock broker.

The trading volume dipped 48pc to 68 million shares, from 134m shares while the traded value also plunged 47pc to Rs3.34 billion.

Mixed sentiments were witnessed in the cement sector where Lucky and Cherat closed in the green whereas Fauji, Maple Leaf and DG Khan Cement closed in the red. Exploration and production sector turned negative with two of the three major scrips together taking away 113 points from the index.

Overall, though activity was mainly in the second-tier stocks, major contribution to the index downside came from Oil and Gas Development Company, down 3.36pc, Pakistan Petroleum 2.72pc, Pakistan Tobacco 4.77pc, Hub Power 2pc and Nestle Pakistan 4.80pc, scrapping 197pts from the index. On the flip side, Engro Corporation, increasing by 2.02pc, United Bank 1.43pc and Mari Petroleum 1.41pc added 67 points.

Published in Dawn, January 4th, 2019