KARACHI: The stock market failed to sustain the rally witnessed a day ago as the KSE-100 index plunged 105.18 points on Friday to 33,263.66.
The profit-taking came mainly in the second session as the index got off to a strong start in the first session, adding 105 points intra-day. The foreign selling continued on Friday with outflow of $1.37 million.
Among local players, mutual funds bought $3.18m worth stocks that helped index close above the day’s lows. The only silver lining was the upcoming SBP monetary policy where analysts’ consensus forecast was a further cut of 50 basis points.
It helped to retain investors’ interest in the leveraged blue-chip scrips in cement, fertiliser and textile sectors.
Analyst at JS Global stated that the cement sector posted slight recovery as CHCC, DGKC, FCCL and MLCF closed up 2.8 per cent, 2.1pc, 3pc, and 1.1pc, respectively. Treet Corporation gained 1pc as the company plans Rs539m capital boosting perpetual sukuk.Analyst Ahsan Mehanti at Arif Habib Corp commented that stocks closed lower amid consolidation in blue-chip scrips post major earnings announcements. Trade remained thin despite strong sales data in oil, auto, cement and fertiliser sectors for July-Feb 2015.
Samar Iqbal, VP Equity Sales at Topline Securities, commented that PSO rallied 1.3pc on Friday as February oil sales grew by 18pc from previous month, which increased expectations of better earnings this quarter. Car assemblers INDU and PSMC gained amid expectations of improved sales during February and depreciation of yen against the dollar.
In its weekend report, brokerage KASB Securities noted that the market was volatile, closing down by 368 points, or 1.1pc, WoW.