The local bourse, amidst wary sentiment, was unable to sustain the 12,000 level as market capitalisation shrunk by 0.66 percent. Investors’ participation remained uninspiring as a meager 50 million shares were traded during today’s session, with LOTPTA leading the board.
Investors remained cautious, underscored by the deteriorating law and order situation in the country coupled with news flows pertaining to budgetary measures. The index has oscillated at around the 12,000 level, since the commencement of the year within the range of 1,400 points.
The KSE-100 index squeezed 79 points and closed at 11,956.89 levels, while total volume and total value stood at 36,153,290 and 1,756,453,770 respectively. The KSE-30 index lost 99.91 points to close at 11,583.85 points, while the All Share index closed at 8,383.19 levels after losing 55.19 points. Out of total 356 scrips, 74 advanced, 187 declined and 95 remain unchanged.
Subdued performance on blue chip scrips including FFC, NBP, MCB and index heavy OGDC pulled the index south. Tensed situation in the city and various threats that may come as a repercussion of OBL operation, added to the nervousness of the investors in the local equity.
Increase in discounts in certain stocks, however, continued to invite cautious accumulation mainly from the corporate front. Meanwhile, low quantum failed to resist the meltdown, but availability of buyers on intervals made life easy for the exit-seeking participants.
Activity at the local bourse is likely to remain volatile with pre-budget news flows continuing to influence the market momentum, said Bilal Asif at HMFS. Caution therefore stays the call, while dips and adjustment in stocks offering consistent dividend yields and have been reporting growth despite a tough economic horizon can be capitalised for placements.
Selling is recommended in stocks facing the wrath of high debt. Increasing input cost and low local and export demand, gas curtailment and circular debt led run-down on cash reserves and operational cash flows, short term trades in the speculative frontlines stay subject to volumetric activity.
Hasnain Asghar Ali at Aziz Fidahusein said that rising inflation, higher interest rates, irking circular debt reserve mismanagement, law and order issues, likely increase in corporate tax slab, and capital gains tax are issues that have left less-space for making local equities attractive.
