KARACHI: The KSE-100 Index ended negative for the fifth successive session as stocks continued to bear the brunt of political uncertainty and a deteriorating economic position.
Investor sentiment has been dampened owing to the upcoming verdict on the Avenfield case to be announced on July 6, 2018. Worsening economic indicators and lack of clarity on policymaking has added to the worry.
The KSE-100 kicked off on a positive note and managed to increase 409 points in intra-day trading before gains were erased and stocks landed in the red.
At close on Thursday, the benchmark KSE-100 recorded a decrease of 106.87 points or 0.26% to finish at 40,238.81.
JS Global analyst Maaz Mulla said the market began trading on a positive note before buckling under pressure.
“Major heavyweights, namely LUCK (+2.94%), KEL (+9.46%), MARI (+1.85%), UBL (+0.61%) and HCAR (+5%) cumulatively contributed 95 points to the overall index. Mixed sentiment was witnessed in the cement sector,” remarked Mulla.
“E&P sector lost value to close lower than its previous day close as crude oil prices edged lower in the international market after US president’s message regarding OPEC and crude prices. PPL (-0.45%) and POL (-0.48%) were the losers of the mentioned sector.
“Moving forward, we expect the market to remain volatile in coming sessions, on the back of overall political ambiguities,” he added.
Overall, trading volumes increased to 143.2 million shares compared with Wednesday’s tally of 117.6 million. The value of shares traded during the day was Rs4.98 billion.
Shares of 340 companies were traded. At the end of the day, 143 stocks closed higher, 163 declined while 34 remained unchanged.
K-Electric was the volume leader with 30.2 million shares, gaining Rs0.49 to close at Rs5.67. It was followed by Pak International Bulk Terminal (R) with 14.5 million shares, gaining Rs0.13 to close at Rs0.97 and Pak Elektron with 6.5 million shares, losing Rs0.38 to close at Rs34.07.
Foreign institutional investors were net sellers of Rs512.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.