KARACHI: Stocks fell for a second straight day with the KSE-100 index declining by 108.04 points, or 0.24pc, to settle at 45,574.07. Volatility prevailed throughout the session as the index hovered between the intra-day high and low by 149 and 163 points.

The market opened in the positive as the NCOC announced ease in Covid restrictions from May 24. It was supported by the stable T-Bills auction cut-off rates. But investor sentiments dampened by the ongoing political uncertainty in the country. Traders worried that crude oil prices could dip in the international market. Such worries pulled back the prices of E&P stocks. The market also remained range-bound as investors were concerned over the upcoming rollover week.

Traded volumes surged 36pc over the previous day to a high of 784.0m shares while the traded value remained about unchanged at $135.7m. Stocks that contributed significantly to the volumes were led by Byco Petroleum whose 120 million shares changed hands.

Analysts at brokerage Aba Ali Habib noted that the overall turnover in the two days remained above the monthly average, mainly due to liquidation of Byco’s stake by Abraaj Group’s IGCF. Around 523 million shares were sold on Wednesday by the group to a local major investor as well as retail investors, and another 120 million shares changed hands in Thursday’s session. “Moreover, global crypto anomaly faced enormous decline in value leading to transfer of funds from digital currency markets to local markets, resulting in rise of activity and healthier volumes in local bourse,” analysts said.

On Thursday foreign investors sold stocks worth $4.93m and mutual funds offloaded shares valued at $2.15m. Individuals were the major buyers of shares worth $5.95m.

Sectors contributing to the index decline included Banks 102pts, E&P 48pts, Technology 25pts, Cement 13pts and Engineering 7pts. Banks were the major laggards in Thursday’s trading session where HBL, HMB, MCB and UBL dented the index. The major scrips that deducted points from the index were HBL 49 pts, OGDC 24 pts, HMB 21 pts, MCB 17 pts and Systems 16 points.

Published in Dawn, May 21st, 2021