Karachi - Dull activity was seen at local bourse due to Karachi bus attack incidence on Wednesday, the KSE-100 index declined 108 points to close at 32,915 points.

After an initial rally of 204 points earlier in the day, the unfortunate shooting incident claiming 43 lives and orders by SECP to close ACE securities shook investors confidence, closing the market 108 points in red.

Profit-taking was witnessed as the market gained strength. On the back of WTI trading above $61/bbl the oil sector rallied closing ATRL 2.2pc and PSO 0.6pc in green.

Pakistan signs plan with IMF to eradicate national circular debt is a huge positive trigger for PSO thus making the script our top pick in the sector. Other top picks in the oil space are POL and ATRL. With the initial rally in cement stocks most of the sector’s top performers ended in red bypassing several positive triggers, including ADB’s announcement of $6b investment in Pakistan’s infrastructure projects and an anticipated interest rate cut in Saturday’s monetary policy, closing PIOC, DGKC and CHCC -2.6pc, -2.2pc and -1.8pc, respectively, observed analyst Ahmed Saeed Khan at JS Global.Traded volumes of 155m shares (Rs.8.4b/ $84m) remained lower than YTD average of 243m shares (Rs.13.3b/ $133m).

No major surprise in MSCI rebalancing force investors to book some profit. Blue chips like DGKC fell 2.5pc, LUCK declined by 1pc, Engro plunged 1.7pc.

Small cap stocks remained active. Volumes traded in PAEL, BYCO and GAIL of 21m shares, 14m shares, and 13m shares respectively, commented analyst Samar Iqbal at brokerage Topline Securities. Stocks closed bearish amid thin trade led by second and third tier scrips.

Profit-taking witnessed on concerns for security unrest in the city. Support remained in oil & gas stocks after global crude oil prices rose and likely increase in local gas prices.

Pre-budget uncertainty and minor change in MSCI review results for May’15 played a catalyst role in bearish activity at KSE, said analyst Ahsan Mehanti.