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Index dips 160 points to end seven-day rally

Dawn 2019-10-09 07:12:11

KARACHI: The seven-day rally at the stock market which added 2,200 points to the KSE-100 index snapped on Tuesday as mutual funds, brokers and insurance companies decided to book profit.

The index declined 160.20 points (0.48 per cent) and closed at 33,476.62 after trading in a narrow range of intraday high and low by 235 and 228 points.

Brokers said some cooling was justified after the long-lasting bull run. “The overall sentiments still appear positive, though investors were into profit booking and switching positions from one sector to another,” said a trader at Arif Habib Limited.

Selling activity was observed generally across the board with disregard to sectorial fundamentals, however, cement sector, which had enjoyed the bull ride. bore brunt of the blow. Lucky was down 1.2pc while Attock, Kohat, Fauji and Maple Leaf also closed in the red.

The volume declined from 392.1 million shares to 242.9m shares (down 38pc) while traded value also fell by 12pc to $56.9m. Stocks that contributed significantly included Unity Foods, TRG Pakistan, Pak Elektron, Bank of Punjab and Pakistan International Bulk Terminal.

The sell-off was fuelled by mutual funds that disposed of equity worth $1.50m with more selling coming from brokers and insurance companies. Individuals who had led the rally continued buying $1.11m worth stocks and were supported by companies and banks. Foreign funds also entered to take positions in shares of $1.84m on dips.

Sector-wise mixed sentiments were seen in exploration and production where Pakistan Oilfields rose but Oil and Gas Development and Pakistan Petroleum declined.

Fertilisers also finished both ways with Engro closing in the red zone while Fauji and Engro Fertiliser ended in green. In banking, Habib gained 1pc while MCB and United each shed 0.4pc.

Major drag to the index performance was attributable to losses in Pakistan Petroleum, loer by 2.04pc, Pakistan State Oil 3.24pc, ENgro Corporation 1.06pc, Hub Power 1.29pc, Searle Company 4.35pc, Lucky Cement 1.25pc, Fauji Cement 4.04pc and Intern­ational Steels 4.79pc.