Stock market observes bearish trend over selling pressures

KARACHI: The Pakistan Stock Exchange on Friday observed a bearish trend for the second consecutive day over selling pressures as investors sought to dump stock for profits.

The benchmark KSE 100 index declined by 212.18 points, or a decrease of 0.53 percent, to eventually close at 40,423.26 points. The indices reached the highest point at 40,603.16 but failed to regain control over trading was suspended on the last day of the week. The total volume of shares was 85.810 million.

Meanwhile, the lower KSE 30 index witnessed a decrease of 56.69 points (0.29%) to close 18,598.66 points. The total volume of shares was 37.873 million. The share prices decreased as most of top active stocks ended up in the red including Lotte Chemical (-4.17%), Hascol (-2.83%), AVN (-4.73%), Unity (-1.66%), BOP (-1.54%), K-Electric (-2.14%), and Fauji Foods (-1.39%).

The current week has seen several ups and downs for the stock market as it moved between the red and green zones and subdued investor investment. The stock market declined on Thursday by 75.69 points to close at 40,455.44 points. There was increased selling in the cement and oil exploration sector as investors dumped stocks over profit-making. The global surge in crude oil prices affected the oil and gas sector in the country.

The ongoing talks between the IMF and the government to review the economic situation have ended. The government has decided to defer a new tax regime till June but reports emerged that the Federal Board of Revenue (FBR) may impose the standard 17 percent sales tax on items dampening investor sentiment.