KARACHI: In a range bound trading, the KSE-100 index closed marginally down by 43.73 points to close at 30,136.57 on Wednesday.
While local institutions and individuals played on both sides of the fence, for the first time in several days, foreign investors turned to book profits with sale of $2.08 million worth stocks.
Yet, there was no sign of panic as most market participants considered that to be a normal trading pattern: “If locals are taking profit at the current high levels, why must the foreigners stay behind?” asked one stock broker.
The pressure on the market was caused by profit taking in heavyweight stocks OGDC and POL in the oil & gas sector on above average volume,” Samar Iqbal, AVP Equities Sales at Topline Securities pointed out; OGDC was down by Rs4.64, while POL lost Rs8.01.
Analyst Arhum Ghous stated that in cement sector, MLCF declined by 2.4 per cent as it posted lower than expected results of earning per share at Rs5.36 due to higher effective tax rate. Bullish momentum was seen in Pharma sector due to the recommendation of Chairman of Pakistan Pharmaceutical Manufacturers Association (PPMA) to reduce tariffs on import of raw material (active ingredients) to zero.
“The Engro Powergen Qadirpur Limited opened trading via provisional counter where the stock closed at upper limit of Rs45.03 with only 3,500 shares traded”, analysts pointed out.
Dealer Ahsan Mehanti observed that the stocks closed lower amid institutional profit taking in oil, fertilizer and telecom stocks as they worried over the political uncertainty and economic losses on account of devastating floods in Punjab.
The market volume stood at 153m shares on Wednesday, representing decrease of 22pc over 195m shares traded the previous day with trading skewed towards mid-tier stocks.