KARACHI: The KSE-100 Index, finally losing its momentum, went up by 47 points within a few minutes of the trading session but then lost its bearings and on closing had lost 20 points.
Experts believe that the bullish run might have created a transaction heavy market condition with equilibrium restored in a short-term correction. The escalating row between the government and the judiciary may also have hurt morale and reduced volume traded. Support from external investors remains crucial to the stock market and to maintain the current buoyant mood on the market.
The KSE-l00 Index closed at 10464.89 with a loss of 19.50 points, while the KSE-30 Index closed at 10055.39, down 29.35 points. The all-shares index closed at 7331.54 with a loss of 17.30 points. Market capitalisation stood at 2,871,249 million and the current volume stood at 86.92 million against the previous volume of 103.15 million, with a 52-week average volume of 122.17 million.
The result season started well as both ABL and PPL posted better results in contrast to general expectation. The country’s desperate economic condition has forced government to rethink its policy of reducing development expenditures along with further taxation, which are meant to buttress the government’s financial kitty.
Total trade volume stood at 54,900 and out of 410 scrips, 179 advanced, 200 declined and 31 remain unchanged. The market performance was fairly mixed, with half or more of the top 10 stocks trading in the red zone. Fatima Fertiliser was among the volume leaders after shareholders of Arif Habib received fresh shares of Fatima Fertiliser as dividends.
The enhanced free float has augmented the selling pressure which pushed the stock down. Refineries remain in the spotlight on the back of posting better than forecast earnings after deregulation of oil prices. Energy giant OGDC and the PPL, along with top-tier banking stocks including the MCB and the NBP, are exhibiting price correction.
“It is believed that the index may remain dependent on results alongside foreign investment inflow,” said Bilal Asif of the Habib Metropolitan Financial Services.