KARACHI: The stock market experienced another day of volatile trade with the KSE-100 index recording a decline of 390.78 points (1.05 per cent) to settle at 36,901.69.

The market started out on a strong note to maintain the momentum from gains of last Friday, but soon succumbed to selling pressure as the investors fret about the surging inflation, possible hike in gas and electric tariffs and other conditions that would come with the International Monetary Fund package. Investors were also spooked by the upcoming budget which could be laden with new levies or addition in current tax rates.

Under the circumstances, the market cheer — if there ever was — over the change at the helm of finance ministry died down. The new advisor’s assertion that things were progressing well on the IMF bailout could not entice investors, nor did his assignment of task to the Federal Board of Revenue relating to simplification of amnesty scheme which is expected to end before the bailout programme. On the contrary, a news report suggested that “the Fund was not in favour of tax amnesty scheme”, which added more uncertainty about the direction of economy ahead.

The index made an intraday high by 187 points and low by 453 points, with the closing seen inclined towards the latter. Commercial banks remained worst performing sector and eroded 118 points from the index, followed by fertiliser and exploration and production which together wiped off 76 points.

The volume was down 29pc over last Friday to 126 million shares and the trading value receded by 33pc to Rs4.43 billion. Major laggards included Habib Bank, decreasing by 2.8pc, Pakis­tan Petroleum 1.1pc, MCB 1.2pc, Lucky Cement 1.6pc, Fauji Fertiliser 1.1pc, Hub Power 0.9pc and Oil and Gas Development Company 0.6pc, which cumulatively brought index lower by 159 points. On the flip side, Lotte Chemical gained 6.63pc to add 8 points.

Published in Dawn, April 23rd, 2019