Stock market ends dismal week in the red

KARACHI: The stock market ended the week on a downward note as the indices slipped on Friday over the absence of economic triggers and growing uncertainty forced investors to stay away.

The benchmark KSE 100 index closed 580.77 points, or a decline of 1.45 percent to close at 40,143.63 points. The stock but remained in the red as trading was suspended. The total volume of scripts was 157.229 million valued at Rs6.120 billion.

The lower bench KSE 30 index also witnessed a decline of 258.94 (1.38%) to close at 18,454.51 points. The share prices of the top active stock declined such as MLCF (-5.34%), Lotte Chemicals (-6.07%), Unity Foods (-6.91%), Hascol (-4.84%), BOP (-2.98%), Fauji Cement (5.80%), Engro Polymer (-4.99%), DGKC (-5.80%) and TRG (-2.60%).

There was a decline in investment in the automobile, chemicals, cement, engineering, and oil exploration sector. The cement sector record growth in the month of January 2020 as sales increased to 4.074 million tonnes, up 11.26 percent in the same month of the previous year. However, this was not reflected in the stock market as the uncertainty dragged the index lower.

The rise in international crude prices and the high inflation rate for January continues to dent stock market sentiments. The key inflation rate at 14.60 percent has dimmed speculation that the policy rate would be slashed next month. There is also growing uncertainty as an IMF is currently in Islamabad to review the progress of the bailout package and provide the next course of action.