KARACHI: The stock market came under selling pressure on Wednesday with KSE-100 index retreating 212.15 points (0.42 per cent) to close at 49,756.77.
The market got off to a roaring start with the index up by 298 points, but having touched the intra-day high of 50,267 points, the index succumbed to selling pressure from jittery institutional players and plunged in the red by 247 points.
Although foreign selling continued unabated with net sale of $3.79m worth stocks, mutual funds and individual investors continued to seize any opportunity to accumulate at dips. Second and third-tier stocks dominated trading with about 46 stocks managing to hit their upper circuits.
Dealers at Topline Securities stated that the pressure was witnessed in later part of the day due to future rollover, which led the market to close in red zone. Profit-taking was witnessed in cement sector as DG Khan Cement, Maple Leaf Cement and Pioneer Cement declined between 0.8-1.5pc.
Other market watchers said that the journey to the south was instigated by sell-off in cements, banks and textile along with some stocks from power, pharmaceuticals and autos.
Analyst Nabeel Haroon at JS Global pointed out that profit taking was witnessed in the fertiliser sector. FFC fell 1.05pc and FATIMA 3.86pc were among the major losers of the sector.
Abra Juma at Global Securities stated that INIL closed at its upper circuit after posting better than consensus earnings estimates accompanied with dividend of Rs2.50 per share. Ahsan Mehanti at Arif Habib Corp observed that the institutional profit-taking was witnessed at PSX amid concerns for foreign outflows and weak global crude prices.
Also uncertainty over the SBP policy rate decision on Jan 28 invited pressure in banking sector, while concerns over the outcome of hearings on Panama Papers case played a catalyst role in bearish close.
courtesy : dawn news