KARACHI: Stocks fell for the fourth straight day on Wednesday with the KSE-100 index receding by 98 points, or 0.21 per cent, to close at 47,248.

The market opened on a positive note as the country looked forward to entering the international debt market to raise $1bn. That, however, did not dispel worries over the increase in Covid cases, the increasing international oil prices that would impact the cost of production and the uncertainty over the situation in neighbouring Afghanistan.

The heating up of atmosphere on the local political front also dampened investor sentiments.

The index plunged to intraday low by 311 points on selling by mutual funds and individuals. The major outflow was seen from the broker proprietary trading amounting to 3.62m.

Sectors that were rampaged by the bears included E&P, cement, textiles, O&GMCs and refinery. Technology and steel and pharmaceutical sectors contributed positively to the index. Late recovery enabled index to recover a lot of lost ground and even move in the green by 31 points intraday.

Analyst Ahsan Mehanti commented that the local stocks closed lower amid global equity selloff and investor concerns for economic uncertainty. Mid-session support remained ahead of financial result announcement next week. “Rupee instability and regional uncertainty played catalyst role in bearish close,” he said.

Sectors contributing to the index downturn included E&P (52 points), tobacco (29 points), cement (20 points), textile (11 points), technology (25 points) and pharma (12 points).

Stocks that were major drag on the index included PAKT (29 points), POL (19 points), KOHC (14 points), PPL (12 points) and BAHL (12 points).

The trading volume declined 24pc over the previous day to 412.2m shares. The traded value also declined by 15pc to $94.2m. Among scrips, FFL topped the turnover list with 40.9m shares.

Equity trader at BMA Capital Hayat Khan showed little interest in market for the short-term believing the index to move sideways. “Let the market take a direction with good volumes before taking fresh position,” he said.

Published in Dawn, July 8th, 2021