KARACHI: Stocks took an unexpected south turn on Thursday after a steep climb in the last two sessions which recouped all of the loss sustained on Monday.
The KSE-100 index closed with a minor loss of 37.99 points (0.11pc) at 33,792.37.
As has become the norm, the direction of the market was set in the last hour, when the index recovered from minus 200 points at which it languished all through the session; intra-day the index had plunged 323 points.
The volume fell 13pc from 195 million shares to 170m, while trading value dipped 17pc from 8.47 billion to a 15-week low of Rs7.06bn. The year-to-date average trading value amounts to Rs12.9bn. Third-tier stocks dominated the volume leaders’ list.
Foreign investors did cherry picking of stocks worth $0.53m, while individuals sold shares valued at $2.41m on Thursday.
Raza Jafri of Interbank Securities said the market was moving more on sentiments than fundamentals.
He agreed that the global equity fall was hurting the local bourse, but added that local political, economic or company fundamentals were the same and did not warrant a market fall.
Analyst Ahsan Mehanti of Arif Habib Corp said the stocks closed flat amid consolidation post major earnings announcements at KSE. Trade remained thin as investors remained cautious on global stocks volatility and State Bank’s policy announcements this weekend.
Dismal earnings announcements in the oil sector, ongoing protests against bank transaction tax and hit on corporate earnings by Ogra announcement for increase in local gas prices played a catalyst role in bearish sentiments.
The oil and gas sector also remained in the negative territory with ATRL shed ding 1.33pc, NRL 2.13pc and PSO 1.92pc.