The index felt the political turmoil prevalent in the city with investors exercising caution.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.58% or 171.98 points to end at 29,711.12.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed negative on the first day of the week due to reports of foreigner selling. “Turnover remained on the lower side as locals remain sidelined and very selective,” said Bilwani.
“Court’s order in favor of the government and a green light to Oil and Gas Development Corporation (OGDC) -0.22% GDS sale brought short-lived excitement and volatility. However, the broader market ended the day lower in absence of any major triggers.
“Engro Foods EFOODS (-1.4%) closed lower after announcing earnings that beat estimates primarily on tax reversals while cements were also in the red on reported institutional selling.
“United Bank (UBL) -0.72% closed negative but generated volumes on system crosses while most financials were dull on lack of interest.”
Bilwani concluded that the increase in power tariffs and book building for OGDC GDS that is likely in the coming days will bode well for macros.
Meanwhile, JS Global analyst Muhammad Mobeen said the index remained uncertain following a major political party’s decision to back out from the Sindh government and the oil and gas sector continued its southwards journey due to weakness in global oil prices.
Trade volumes fell to 126 million shares compared to Friday’s tally of 159 million.
Shares of 360 companies were traded on Monday. Of these, 246 companies declined, 105 closed higher while 9 remained unchanged. The value of shares traded during the day was Rs6.1 billion.
Lalpir Power was the volume leader with 11.2 million shares, losing Rs0.10 to close at Rs19.22. It was followed by Dewan Motors with 10 million shares, gaining Rs0.48 to close at Rs10.48 and Pakistan International Bulk Terminal with 6.8 million shares, losing Rs1.01 to close at Rs22.63.
Foreign institutional investors were net sellers of Rs891 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.