Heavy offloading at stock exchange


KARACHI – The first World Cup semifinal pushed the market into stagnation, triple digit gains however sustained the bourse the day end, despite off-loading in high priced stocks on strength.
The KSE 100 index closed at 11,711.40 with a gain of 128.37 points while total volume stood at 89,095,915 along with the total value of 5,133,587,271. KSE 30 index gained 126.56 points to close at 11429.64, and All Share index closed at 8,188.00 after gaining 83.34 points. A total of 170 scrips advanced, 98 declined and 89 remain unchanged out of a total of 357 scrips traded.
The positive opening was sustained by double digit dividend yielding and large cap stocks along with various mid-tier stocks led the rally, the rally that was thoroughly backed by decent turnover generated by the leverage players, now emerging strongly due to availability of financing through MTS, a stringent version of CFS.
The likely beneficiary of the talks between the premiers in the cricket stadium, the cement sector, in case the Indian authorities, except the proposal likely to be forwarded for resumption of cement exports to India, allowed frontline stocks of the sector to join the wave along with various stocks, either high dividend yielding stocks safe from wrath of economic calamities or those trading way below the recent highs.
A rise in turnover also encouraged participants from both the corporate and retail circuits, back-up support of financing through MTS, at much lower rate than was expected, was as a tonic for the local participants. Although the product has been available for weeks, recently, market men are getting familiar with the product.
Since financing will allow accumulators to resist massive sell-off through foreign or local channels by nervy financial groups, operating through both local and off-shore accounts. Its cheap availability has seemingly strengthened local operators.
Although the Capital Gains Tax (CGT) has reduced the number of participants and prevented the local bourse from perform to its full potential, availability of financing through recently introduced leverage products has placed at least domestic participants in a comfortable position, as depicted by increasing bids (in decent quantity) and offers (at lower levels).
Various high priced stocks from frontline sectors do carry high chances of trading at improved multiples on support of leverage facility, yet the threat of off-loading through offshore channels by local financial groups and the likelihood of further adjustment due to sell off due to stagnation, said Hasnain Asghar Ali at Aziz Fidahusein.