KARACHI: The recovery on Friday proved short lived as stocks resumed on Monday the downward journey extended the losing streak of six days seen till Thursday the previous week.
The KSE-100 index declined by 146.76 points or 0.43pc to 33,796.44. It was in addition to the heaviest weekly decline of 714 points or 2.05pc last week. The significant feature was net purchases by foreign investors of stocks valued at $5.99m; the inflow being $4m in oil and gas and $1.0m in chemicals sectors.
It was a pleasant surprise for the market after persistent sale by foreigners. Among the local participants, both individual and institutional investors opted to take profit with the aggregate market volume down by 29pc to 177m shares and trading value reduced by Rs32pc to Rs10bn.
Volume leaders were mainly the second-tier stocks. Cement sector took centre stage with trading seen in over 26m shares followed by travel and leisure sector 16m shares and banking sector 13m shares.
A delegation of market participants, including the KSE board members, major brokers and heads of blue-chip companies flew over to London on Sunday to conduct road-shows.
Ahsan Mehanti, analyst at Arif Habib Corp said that the stocks closed bearish on Monday on institutional profit-taking and various rumours inviting panic selling. Uncertainty in global commodities and consolidation post earnings announcements played a catalyst role in bearish activity at KSE despite support in some sectors.
Analyst Arhum Ghous at JS Global observed that the market continued its bearish momentum. Cement sector remained depressed with profit-takers dominating the day.
MLCF, LUCK, DGKC, FECTC and CHCC all ended lower due to rise in international coal prices. FCCL witnessed a small gain.