KARACHI

Karachi shares market continued its journey in the red on Wednesday and KSE-100 Index posted a loss of 130.55 points or 0.4pc to close at 32,599 points level.

Investors remained cautious ahead of budget as a result market remained depressed. Market fell for the 4th consecutive sessions in which KSE-100 index declined by 1.5pc. The market remained depressed today as the National Assembly passed the GIDC bill amid strong protests. The GIDC bill can potentially have a negative impact on Fatima, which closed at its lower circuit today. Cement sector witnessed slow accumulation from the investors on news that Rs149b out of Rs580b in PSDP will be allocated for construction of motorways and bridges, stated analyst Muhammad Mobeen at JS Global.

Bearish activity witnessed after GIDC Bill 2014 approval in NA likely to hit earnings in listed corporate sector. Oil stocks closed lower on drop in global crude prices. Falling spreads invited pressure in banking stocks. Trade remained thin as investor remained cautious ahead of bi-monthly Monetary Policy announcements on May 23, observed analyst Ahsan Mehanti at Arif Habib Corp. Imposition of GIDC (Gas Infrastructure Development Cess) dented the sentiments. As investors think that GIDC implementation will impact earnings especially of new fertilizer plants. Banking stocks like MCB and UBL remained depressed in expectations of monetary easing in the upcoming monetary policy, said analyst at Topline brokerage. Traded volumes of 135m shares (Rs.7.2b) is lower than Month-to-Date average of 175m shares (Rs.9.3b) Fatima led the volume with 17m shares (closed -5pc) followed by EFERT with 11m shares (up by 0.8pc) and BYCO with 10m shares (rallied by 5.21pc).