KARACHI: The stock market traded both ways on Tuesday but finally conceded some of the huge gains it had secured the previous day. The KSE-100 index closed down by 96.62 points (0.25 per cent) at 39,199.68.

Market opened in the positive trajectory, partly building on the momentum generated the in previous day’s rally and partly as investors continued to relish windfall gains to the economy in the form of declining oil prices; squeeze in trade deficit by 27pc during 8MFY20 and lower-than-expected inflation numbers for February over the earlier month, raising hopes of an early cut in interest rates by the State Bank of Pakistan.

Following an initial rise to intraday high by 570 points, investors decided to take profit and the index tumbled to intraday low by 239 points. Foreign fund managers continued to sell off equities in the regional markets including Pakistan with outflow of $4.97 million was noted. However, companies, banks and mutual funds took fresh positions minimising the impact of foreigners’ exit.

The volume increased 5pc to to 225.2m shares from 215.3m while traded value, however, dipped by 3pc to reach $56.7m as against $58.7m. Cement continued to hold investor interest on reports of manufacturers’ meeting later in the month. Major gainers in the sector included Maple Lea, up 1.2pc, DG Khan 2.2pc, Cherat 7pc, Kohat 3.1pc and Fauji 1.1pc.

Mixed sentiments were witnessed in banking where Habib, edging up 0.1pc, Allied 1.1pc and Bank Al Habib 0.5pc finished with gains while National declined 3.20pc, MCB 0.4pc; Meezan 1.06pc and Bank of Punjab 2.7pc.

In fertiliser, reports of Fauji cutting back the price of urea induced investors to switch to other sectors, mainly the oil and gas chains. Fauji Fertiliser was down 2.71pc, Engro lost 1.74pc, Dawood Hercules gave up 1.35pc and Engro Fertiliser shed 2.21pc of their values.

Published in Dawn, March 4th, 2020