KARACHI – The local bourse exhibited bearish activity with thin volumes on Friday. The KSE-100 index shed 20.62 points or 0.17 percent to close at 12,041.15 points, as investors’ stayed concerned over the deepening diplomatic crisis between Pakistan and the United States.
The intraday high and low stood at 12,142.15 and 11, 963.16 points respectively. Ahsan Mehanti of Arif Habib Investments viewed that swelling circular debt in the local energy sector and the ongoing unrest in the Arab world had also dampened market sentiments. “Rising circular debt issue in Pakistan energy sector and ongoing unrest in the Arab world affected the market sentiment in the earnings announcement session despite higher global commodity prices and foreign interest in blue chip scrips in oil, banking and fertiliser sectors,” he maintained.
The total share trading at the ready-counter stood at 70.392 million, around 9.8 million less than Thursday’s volume of 60.592 million. Market capitalisation also remained downward at Rs 3.258 trillion against the previous Rs 3.263 trillion, exhibiting a slump of over Rs 5.0 billion. Nishat Mills, with a volume of 9.518 million shares, was the volume leader. The future market also exhibited a slump in share trading which closed at 5.543 million, showing a decrease of 0.965 million compared to 4.578 million.
“Despite tactical low volume strength in selected stocks, that did allow the index a positive opening, across the board off-loading, however, forced the index triple digit loss,” said Husnain Asghar of Aziz Fidahusein. The analyst said that the strategy of restricting the benchmark from going deeper in the red zone, however, did come into play despite extreme pressure in the wider market wherein various stocks saw low volume price erosion due to stagnation and redemption led sell-off.
He said a squeeze in turnover amid gloomy short-term horizon had seemingly kept chances of a landslide decline on the higher side, thus forcing the local stakeholders to either hold on to their liquid parked in foreign currency or opt the secure stocks offering consistent dividend yields despite all odds. “Corporate influx and mild short covering followed by speculative roar/buying in selective stocks did arrest unprecedented decline in early hours.
However, low quantum buyers failed to inspire follow-up support – thereby disallowing local equities to signal comfort and sustain the attained levels. Despite excited calls of mock session of the leverage product, still with the law ministry, approach adopted by the KSE management of completing formalities even before the product is released should be applauded.
Stakeholders, however, denied to get trapped if intended by announcing presentations and mock sessions,” he opined.
