KARACHI: Stocks faltered on Tuesday with the KSE-100 index declining by 154.68 points, or 0.32 per cent, at 48,147.

The market opened on a bullish note and the index rose to intraday high by 107 points as investors’ interest remained sustained on positive news flow relating mainly to the federal budget. In a meeting with the PSX MD, the finance minister promised to look into the PSX budget proposals and support the market went well with the investors.

The drop in coronavirus positivity ratio to 3.02pc according to the National Command and Operation Centre (NCOC) which allowed opening up of the small-scale businesses provided further impetus to the buyers. Moreover, the NEC approved development outlay for FY22, higher by 40pc and approved a cut in duties on raw materials under 600 tariff lines.

Yet, banks, individuals and foreign investors decided to book profit and to remain cautious while the talks with the IMF were in progress. Companies compensated by mopping up liquidity to an extent and the mutual funds and brokers who had been major sellers a day ago, also bought to build portfolio.

The index succumbed to selling pressure mid-day in several sectors which pushed it down to intraday low by 302 points. Refineries, steel, O&GMCs, textiles, E&Ps and Technology sector saw shares drop. Cement scrips managed to crawl up in the green in the last hour on reports of increase in cement price per bag, while automobiles took beating the entire day.

The scrips that dragged the index down included: TRG, PSO, OGDC, SNGP and KTML. Kapco managed to retain investor interest with a price rise of 6pc as the board of directors has called a meeting to consider the declaration of an interim cash dividend.

Traders said investors offloaded TRG on absence of clarity regarding the implications of a proposed global minimum tax rate by the G7 countries.

The trading volume was recorded at 1.04bn shares, up 11pc over the previous day with major contribution coming from WTL, Byco, Hum Network and other sideboard items.

Published in Dawn, June 9th, 2021