KARACHI: The market sustained a volatile behavior as the KSE-100 index oscillated in the range of 11,229 and 11,109 points. The market aimed for a new high in the present bull run at the day start. However, selling pressure later in the day brought the KSE to correction phase. The KSE-100 index dwindled 19 points and closed at 11,135 points.
This particular volatility is linked with the upcoming monetary policy announcement on the 29th of this month, as investors booked profits and thus squared their positions.
The KSE 30 index squeezed 12.67 points and closed at 10755.84 levels, while all share index closed at 7808.49 following reduction of 14.05 points. 163 scrips advanced, 209 declined and 20 remain unchanged out of total 392 scrips. The current turnover stood at 86,149,102 against the previous 153,970,304, while current trading value stood at 3.84bn against the previous 5.50bn. The volumes, on the other hand, diminished by 44 percent to 86 million shares, while the top three volume leaders were LOTPTA, AHCL and NML.
Exceptional performance by the textile stock provoked a massive turnover and astounding gains, giving market a jump start. Turnover in various low priced stocks did invite short term trades, however absence of follow-up to the buying spree in main board stocks and cued-up sellers on strength mainly in the expensive stocks, allowed stagnation to re-surface.
Issues on economic and financial fronts mainly linked to impact of implementation of reformed GST on the suffocating economy and incase of non-implementation, impact on the foreign inflows (that carry a high quantum in shape of debts).
In addition, threat of rate hike in the upcoming monetary policy, roll over pressure from November-December futures and non availability of ready board leverage kept the pressure mounting, while the local bourse stayed at the mercy of local financial groups for turnover generation that usually allowed trading opportunities.
Therefore, dividend yielding stocks, stocks which generally invite interest by the sponsors having sound fundamental basis and speculative tendency can be looked for accumulation on dips for short term trading.
