KARACHI: Stocks remained volatile on Tuesday with early gains by the bulls melting away mid-session. The KSE-100 index slipped 16.85 points or 0.06 per cent to close at 29,694.27.
While subdued stock prices were thought to be attractive by bold buyers, there was an equally heavy sell-off by nervous investors who feared further slump in equity values.
The market players were trying to figure out medium-term outlook of foreign investors on Pakistan stocks.
On Tuesday, more selling of $1.72 million was noticed by overseas investors, which including the relatively heavy profit taking of $8.92m on Monday, took the foreign outflow at $25.8m into the third week.
Volumes increased by 13pc to 144m shares on Tuesday with second-tier stocks, quoted below Rs30, among the 10 volume leaders. Dewan Motor closing at just around its par value claimed the highest volume of 11m shares.
“Stocks closed lower amid bearish activity in oil and telecom sector on dismal earnings outlook,” commented Ahsan Mehanti at Arif Habib Corp.
He stated that ICH withdrawal impact on LDI revenues of PTCL, fall in global oil benchmark towards $86 per barrel at four-year low and rising political uncertainty played a catalyst role in bearish activity despite Supreme Court approval of sales of 10pc shares in OGDCL and current account surplus in Sept 2014.
Samar Iqbal AVP Equity Sales at Topline Securities observed that the index remained affected amid fall in oil sector as Investors kept on trimming their portfolios in the sector. Renewed interest in banks and cements stocks were seen on expectation of better Sept results.
Ovais Ahsan said that the biggest contributors to the index were UBL up by 1.5pc, Nestle 2.5pc and National Foods higher by 4.3pc.