KARACHI: The PSX witnessed another lack luster session, as the index traded between an intraday high of 105 points and a low of 412 points to close at 41,623 level by shedding 246 points. Volumes stood at 83 million shares as compared to 57 million shares of the previous trading session. K Electric led the volumes with 6 million shares of the power generation company changing hands. Despite dull activity, market appeared to consolidate as prices have fallen down to attractive levels. Mixed sentiment were witnessed in the banking sector where MCB and UBL closed positive, while on the flipside HBL and NBP lost value to close in the red. Cement sector continued its declining trend as heavyweights such as FCCL, LUCK, PIOC and CHCC lost value to close in the red zone. Pakistan equities are facing bearish spell after the budget announcement and have lost 4.5 percent in a single week, that is highest weekly loss of 2018 amidst depleting foreign reserves and rising political noise ahead of general election 2018. Investors’ remained sidelined during the week where market participation in terms of value on Thursday (Mar 17, 2018) touched 46 months low. Traded value during the week went down by 22 percent, while trading volume showed decline of 31 percent, according to Topline Securities. Lower investors participation is due to absence of any positive trigger. Key events to track going forward will be official announcement of general election date, inflows of foreign currency in Pakistan, and announcement of interim Prime Minister by Leader of Opposition and Prime Minister. Foreign selling in Commercial banks kept whole sector under pressure during the week and eroded 346 points from the index. Among scrips, HBL lost 4.5%, UBL (-5%) and MCB (-1%) during the week. Foreigners were net sellers during the week amounting to $20 million against net selling of $4.1 million last week. On the other hand, amongst local investors mutual funds were net sellers of $16.8 million whereas banks were net buyer of $20.2 million. Analysts expect bearish sentiments in the market to continue on the back of political uncertainties and concerning economic indicators. Hence, we recommend investors to remain cautious in trading. Published in Daily Times, May 19th 2018.