KARACHI: Stock market remained in search of direction on Monday as the KSE-100 index gained a minor 94.75 points (0.28 per cent) and closed at 33,996.33. Investor participation was thin with the traded volume at 30-session low.

The index opened on a positive note on the first trading day of FY20 but trading remained choppy with the index making an intraday low of 76 and high of 167 points. The callous attitude of economic managers towards the capital market and no sign of market support fund after over a month of finance minister’s promise weakened investor sentiments who were already concerned over further devaluation of the rupee and surge in June Inflation that could result in interest rate hike.

News reports of Pakistan receiving the first tranche of $500 million from Qatar failed to excite investors. The polarised political atmosphere created more uncertainty, which drove away participants to safe bets of risk-free investments.

Even the upcoming earnings seasons failed to attract investors and the market saw trading in 48 million shares, down 78pc over. Traded value dipped 72pc to Rs1.77 billion from Rs6.34bn. Brokers were most active with sales of $3.16m worth stocks from their “proprietary” account.

Scrip-wise, Fauji Fertiliser gained 3.14pc and Engro Fertiliser 1.63pc on reports of increase in urea rates by Rs210 per bag as manufacturers passed on the recently announced gas price increase.

Cement sector also hit by the gas price hike saw most scrips close in the red including DG Khan, Maple Leaf, Pioneer and Lucky Cement. Mixed sentiments were witnessed in the banking space where Habib was up while National hit its upper circuit. On the flip side, MCB, Meezan and United closed in the red.

Published in Dawn, July 2nd, 2019