KARACHI: Pakistan equities continued to slide on Thursday with benchmark KSE-100 Index shedding nearly 700 points during the trading session to set an intra-day low of 41,750. However late recovery in select blue chips pushed the Index to 41,960 at close. KSE-100 Index lost 485.76 points. Market came under pressure sailing in line with its regional peers where Asian markets declined on the back worries over global growth with economic slowdown in China. Also, the major reasons for the decline were disappointing results announcements, especially those of Engro and Pak Elektron (PAEL), continued foreign portfolio outflow, which touched $ 1.87 million, dampened sentiments. Engro lost 2.43 percent value as it was one of the top contributors towards dragging down the Index following the announcement of second quarter 2018 EPS of only Rs 3.62 versus market’s consensus expectations of Rs 7.3. It also announced DPS of Rs 7.00, but this could not lift sentiments. PAEL lost 4.84 percent because it posted an EPS of Rs 1.34 in second quarter 2018, which is 58.6 percent below its earnings in the corresponding period last year. Index rallied into positive zone for a brief period after a negative start but caved into selling pressures in Index heavy weights viz. Financials, Cements and Steels. Among the key result announcements, Engro Corporation (Engro), Bank Al-Habib (BAHL) and Pak Elekron (PAEL) posted quarterly consolidated EPS of Rs 3.62, Rs 1.93 and Rs 1.34, respectively, which failed to garner investors’ interest. “With Index retreating to current levels, charts indicate consolidation around this area. With a number of key political appointments made in favor of PTI, investors would remain watchful of source of financial flows for bailout and associated set of austerity measures”, said Murtaza Jafa, an analyst at Elixir Securities. Traded volumes marginally decreased by 2 percent day-on-day (DoD) to 142 million shares, while value traded decreased to $ 58 million. Top volume stocks were DOL, PAEL and BOP An equity analyst Danish Ladhani expects the market to remain volatile and choppy with flows from local and foreign institutions directing the market. Published in Daily Times, August 17th 2018.