KARACHI: The KSE-100 Index continued to reel from political as well as economic turmoil, registering a decline for the fourth successive trading session amid low volumes.
The KSE-100 Index opened on a positive note, but landed in the red soon enough with investors opting to stay on the sidelines and await clarity on several matters.
At close, the benchmark KSE 100-share Index recorded a decrease of 158.33 points or 0.37% to settle at 42,301.20.
JS Global analyst Maaz Mulla said the index remained lacklustre, trading between an intraday high of 120 and a low of 261 points.
“Despite dull activity, the market appeared to consolidate as prices have fallen down to extremely attractive levels,” Mulla remarked.
“Cement sector remained under the hammer where PIOC (-2.46%), DGKC (-1.13%), MLCF (-1.68%) and LUCK (-1.52%) lost value to close in the red. Steel sector too, lost value to close lower than its previous day close as ISL (-2.44%) and MUGHAL (-1.74%) closed in the red trajectory.
“We expect bearish sentiment in the market to continue on the back of political uncertainty and concerning economic indicators. Also, redemptions on mutual funds are likely to cause further selling pressure. Hence, we recommend investors to remain cautious,” the analyst added.
According to Topline Securities, equities continued to fall post re-emergence of political noise.
“Investors are waiting for a positive development on both economic and political fronts, which is worsening over the period of time. As a result, the market has lost 7% month-to-date,” the report added.
“Market participation in terms of traded value touched a 149-session low to Rs2.9 billion, while similar situation was witnessed back in Dec 18, 2017 with value of Rs2.6 billion.”
Overall, trading volumes fell to 77.5 million shares compared with Tuesday’s tally of 181 million.
Shares of 342 companies were traded. At the end of the day, 131 stocks closed higher, 184 declined while 27 remained unchanged. The value of shares traded during the day was Rs2.9 billion.
Faysal Bank was the volume leader with 5.1 million shares, losing Rs0.19 to close at Rs24.39. It was followed by First Dawood Investment Bank with 3.9 million shares, losing Rs0.30 to close at Rs4.16 and Unity Foods with 3.8 million shares, losing Rs0.78 to close at Rs26.35.
Foreign institutional investors were net sellers of Rs254.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.