KARACHI: After a day of respite, the stocks resumed downward journey on Wednesday when the KSE100 index melted another 237.49 points (0.58 per cent) to close at 40,522.04.

The market opened positive and the index made intraday high by 65 points.

However, investors were soon gripped by fear as some of the government`s likely steps of belttightening measures through the upcoming Finance Bill were revealed.

Investors were mainly struck by the possibility of a cut in Public Sector Development Program which sent shares in the cement sector reeling by 67 points. Heavyweight DG Khan Cement was down 3.77pc, Lucky 2.94pc and Maple Leaf 0.93pc.

Among banks, HabibBank, United Bank, Bank of Punjab, National Bank and Bank Alfalah saw bulk of the trades though bearish pressure caused prices toslide, leaving the sector poorer by 61 points.

Fertiliser sector took away 30 points, oil and gas marketing companies 27 pointsand food sector 26 points.

On the other hand, exploration and production which scored 51 points was the lone major gainer for theday on the back of increasing international crude oil prices. PPL went higher by 1.64pc, Oil and Gas Development Company0.20pc and Pakistan Olfields 1.32pc were the major movers of the sector.

Due to massive profit-taking, the index dipped to intraday 335 points but towards the end, savvy investors took courage to cherrypick which enabled index to recover 194 points.

The volume largely stayed the same at 137 million shares as against 140m the previous day while the traded value declined 7.7pc to reach Rs5.32 billion.

Leaders included Unity Foods, Bank of Punjab, Dexon Oxychem Ltd, Shabbir Tiles and Ceramics and Fauji Foods, reflecting 34pcofthe totalturnover.

The concerns of what the mini budget expected on Friday may hold overshadowed reports of narrowing trade deficit. Investors are likely to wait before taking fresh positions and reduce short-term positions on strength due to lack of positive triggers.