Stocks lose 843 points in a week.

KARACHI -- Stocks turned bearish in the outgoing week after a strong performance the week before. The KSE-100 index fell 843 points (2.5 per cent) and settled at 33,268. The market started the week on profit taking and thereafter remained range bound.

Cyclicals, mainly cement stocks that had provided major support to the market in the earlier week following the government's announcement of opening up of the construction sector went into profit taking after an increase in price of cement bags did not materialise.

Decline in cement diepatches by 24pc year-on-year in the same month and the massive fall in exports by 54pc year-on-year in April unnerved investors. Other than that, the market generally moved in line with the news flow on the economic side.

Optimism ignited by reduction in petroleum prices, support from International Financial Institutions and strengthening of rupee against the dollar. On the flip side, the International Monetary Fund's dire prediction of total foreign reserves depletion by $1.9 billion in the next 15 months caused concerns while investors' confidence on further reduction in interest rates diminished after the 12-month treasury bill cut-off yield climbed by 28 basis points.

Other news that moved the market either ways included Pakistan's addition to the UN's Coronavirus Fund list; Pakistan's formal application for $1.8bn in debt relief from G-20, the finalisation of $305 million loan from the Asian Development Bank, and widening of trade deficit by 42pc month-on-month in April.

Government moved to take over Rs800bn power sector circular debt. Another important development during the week was the reduction in regasified liquefied natural gas prices. Analysts said they expected the chemical and textile companies operating in the north to be the key beneficiaries of the development.

Foreign investors dumped equities worth...