The stock market remained range-bound and directionless throughout the trading session on Thursday. The KSE-100 index fell by 147.39 points or 0.42 percent and closed at 34,887.64 points.
An equity analyst at Next Securities said news reports that Pak-IMF deal may be announced on Friday also failed to excite investors, given the tough terms that will likely be set by the IMF along with the bailout package. Most of the actions, on demand of the IMF, would be part of the upcoming budget, to be announced on June 11.
According to equity trader Maaz Mulla, volatility prevailed at the bourse with relatively lower volumes of 78 million shares. The KSE-100 index made an intraday high of +265 points and low of -206 points. Profit-booking was seen in the market where investors started reducing intraday positions. Despite mundane activity, market appeared to consolidate as prices have fallen down to extremely attractive levels.
On the news front, Pakistan and the IMF have worked out financing gap of $10 billion to $11 billion for the next financial year 2019-20, as the current account deficit is projected to be curtailed at $8 billion. Weak investor sentiments in the banking sector weighed down the index as MCB (-2.9%), HBL (-2.1%), UBL (-1.5%) and NBP (-2.0%) closed lower. Cement sector closed higher than the previous day on the back of rumours that cement manufacturers have agreed on new arrangement in which reservations of Fauji Cement have been addressed.
Pioneer Cement (+4.9%), Cherat Cement (+3.9%), DG Khan Cement (+2.9%), Fauji Cement (+3.4%) and Lucky Cement (+1.7%)closed in the green.
Maple Leaf Cement (+3.3%), Sui Northern Gas Pipelines (+4.1%) and Lotte Chemical (+1.0%) were among the volume leaders for the session, accumulatively contributing 15million shares towards the total volume.
Mulla expects bearish sentiments in the market to continue on the back of political uncertainties and concerning economic indicators.