KARACHI: Stocks extended the losses on Friday with the KSE-100 index slipping by 54.58 points (0.14 per cent) to close at 40,016.13. The index sank due mainly to the negative contribution by major banks.
As some investors pondered over the provisions made by big banks most of them, on the other hand, preferred to sell their positions. Other than that, the lingering concerns over the soaring Indo-Pak relations and talks of war spooked investors. The DG ISPR told media that Pakistan was capable of giving a befitting response if India were to impose a war.
Investors kept an eye on the Financial Action Task Force review. The global anti-money laundering agency announced that Pakistan had made “limited progress” on a plan to combat terrorism financing and decided to keep the country on its grey list. Finally, the roll-over week of future contracts kept investors cautious.
The index initially moved up by 11 points, but succumbed to selling pressure, dropping to intra-day low by 271 points as banking stocks came under the hammer. United Bank Ltd (UBL) hit the lower circuit while Habib Bank Ltd (HBL) also shed 1.2pc. National Bank of Pakistan (NBP), which declared results on Friday, also traded in red.
Volumes declined from 103 million shares to 98m shares (down 4pc DoD). Average traded value also declined by 10pc to reach $39m as against $44m. Stocks that contributed significantly to the volumes include Bank of Punjab, Pak Elektron, Oil and Gas Development Company (OGDC), Lotte Chemical and UBL, which formed 26pc of total volumes.
Other than the banking sector, which washed away 99 points from the index, miscellaneous sector lost 26 points. Exploration and production sector added 23 points and automobiles also contributed 20 points.
Scrips that contributed to the index decline included UBL down 5pc, HBL 1.2pc, Engro Corporation 0.9pc, NBP 2.3pc, Lucky Cement 0.5pc and Kot Addu Power Company 1.5pc cumulatively taking away 144 points. On the flip side, Bank Al Habib Ltd was up 1.78pc, MCB Bank Ltd 1.10pc and OGDC 0.77pc added 59 points.
Published in Dawn, February 23rd, 2019