While the frontline stocks continued to adhere to the profit taking trend amid low participation on strength, volumetric activity in low priced stocks was exhibited by domestic investors. Based on unconfirmed rumors suggesting a financial restructuring in Dewan group allowed beneficiaries including the listed companies of the group and the banks holding high debt of the group companies to invite huge turnover.
This trend was duly followed by various telecom stocks on rumors of likely increase in calling margins and singled-out stocks from various other sectors, which allowed the turnover to display substantial increase, traded value however stayed extremely low. The KSE-100 index closed at 12,195.59 with the loss of 29.93 points and total volume stood at 51,740,258 along with the total value of 1,731,001,412. KSE-30 index lost 47.88 points to close at 11,798.36 and All Share index closed at 8488.55 levels after losing 14.39 points. A total of 134 scrips advanced, 134 declined and 76 remain unchanged out of a total of 344 scrips traded.
However, dips in various frontline dividend yielders did invite greater interest, besides allowing some quality volume. Low volume price erosion in various high priced stocks during closing hours reflected negatively on the board, while investors awaiting official announcement during budget speech regarding fate of CGT.
Increased political volatility after the visit of US dignitaries has certainly enhanced the cautious stance, mainly amongst the local participants which was also quite evident from the day’s trading. The news report that consensus has been reached between SECP and the finance ministry of making CGT a transaction tax as well as invited renewed buying during the closing hours. Unconfirmed news reports however hindered the expected reaction and chances are that the upcoming budget is likely to remain positive for the equity market said Hasnain Asghar Ali at Aziz Fidahusein.
