KARACHI – News regarding calculation and reporting of CGT further dampened investor’s morale that were already shaken by diplomatic row over arrest of U.S citizen, resultantly KSE-100 hit the valley below 11,900 level only to recover in the wee hours, owing to support at lower levels amidst thin volume of 68 million shares.
The KSE-100 index closed at the 11,946.09 levels with the gain of 2.75 points, while total volume stood at 42,763,152 along with the value of 2,443,478,415. The KSE 30 index gained 11.21 points to close at 11,546.54 levels, while All Share index closed at 8360.45 levels after losing 1.62 points.
Fertiliser giant ENGRO announced CY10 earnings of Rs 20.72 per share along with stock and cash dividend of 20 percent each, consequently drawing investor’s attention. NCL led the volume leader’s board along with heavy participation in NPL owing to healthy earnings expectation. Benchmark index has shed 736 points (six percent since the recent high of 12,682, bringing back attractive valuation levels for enterprising investors to capitalise upon.
The absence of sellers mainly in high priced stocks who are struggling to sustain even to the adjusted price levels soon pushed the index into the red zone, despite hints from the board room regarding approval of the leverage products. Day-end short covering along with low volume gains in expensive stocks yet again prevented the benchmark from reflecting the wider sentiment, by minimising losses. The turnover however remained low, thus reflecting clipped activity, even by the resident participants and market punters.
Dividend yielding stocks in relatively safer sectors continued to invite interest in the case of equity investments, both from corporate and retail sectors; though, rising fiscal imbalance and government borrowings continue to pose the threat of likely downgrading. Besides various financial matters that continue to keep the equity markets less-attractive for the wider market participants, the cold spell with the US has added to anxiety and dulled activity in the case of local financial groups and holding companies, while the likelihood of stagnation led to a sell-off by off-shore participants have certainly heightened concerns.
Hasnain Asghar Ali at Aziz Fidahusein said that some corporate participants continue to place funds in risk free government securities, while some were addressing redemption calls while other preferred to sustain liquidity for likely currency swap. In case, the economic and financial pressures remain at current alarming levels and offering less for the equity market, caution is therefore the prevalent emotion.
