KARACHI: After seven straight sessions of gains, the benchmark KSE-100 index took a breather on Wednesday in a choppy session.
The start was weak as the index took a dip of 118 points, but the benchmark not only managed to recover its lows during the day, it also rallied up to an intra-day high of 49,069.05 points. The index then succumbed to selling pressure after it failed to break out of its psychological resistance of 49,000 points and eventually closed down by 122.56 points (025 per cent) at 48,704.99.
A senior broker stressed that the market took the “essential correction” on Wednesday after a steady run-up of 4.7pc. Investors were inclined to take profit after the Panama Papers leaks case resumed, and crude oil prices declined on a stronger dollar.
“Index heavyweights in the banking sector witnessed consolidation, which led the market to close in the red zone,” dealers at Topline Securities said. “MCB Bank, United Bank and Oil and Gas Development Company (OGDC) contributed 83 points to the fall in index, down 1.9pc, 1pc and 1.2pc, respectively.”
In the cement sector, DG Khan Cement, Fauji Cement and Maple Leaf Cement registered a decline in the range of 0.3pc to 1.5pc.
Overall, the volume of traded shares fell 19.5pc over the earlier day to 403 million shares, while the trading value dropped 20pc to Rs21.7 billion.
Shares of exploration and production companies, oil-marketing companies, fertilisers, cements, glass and autos declined, according to Intermarket Securities. Gains to the upside were largely underpinned by movement in Dawood Hercules which rose 2.39pc, Hub Power Company 1.24pc, Searle Pakistan 1.94pc, Habib Bank 0.37pc and Askari Bank 4.99pc, adding 84 points in aggregate.