The stock market is passing through the dullest phase of the current year where investors are simply preferring to stay away. The average volume for the week nosedived to merely 53 million shares, while the preceding week witnessed volumes of 112 million shares. Furthermore, the benchmark moved within a narrow band of 128 points, whereas the week on week basis index lost 16.5 points to close at 12,361 points.
“In the near term the only trigger which may possibly generate volumes and attract investors towards the stock market would be the onset of the fiscal year result season”, said Bilal Asif at HMFS, adding that the stock market has already made its adjustment for budgetary measures along with rest of the forecasted economic indicators.
News and rumors generated some activity in the current week especially as the expectation of a windfall dividend from PPL generated some interest. But a news clip on improved OMCs margin was unable to fuel the market. The advance to decline ratio during the week was indicative of the seller’s domination on the market. Luckily the E&P king OGDC provided some stability to the index with its marginal decline.
Banks were under pressure as the top five banks contributed negatively towards the index point table. From the oil sector merely PPL and PSO, which are both news specific stocks, registered marginal gains whereas the rest moved downwards. The element of foreign intrusion was also missing; hence investors were fairly helpless in trying to move the stock market. After a long time international oil prices which were hovering around the $100 per barrel, slid down sharply below the $96 per barrel mark.
Sliding oil prices provided a ray of hope to the general public in that oil related inflation may witnesses a downward trend. Furthermore, food prices remain more or less stable suggesting that inflation for the current month may be undermined and with the beginning of new fiscal year we may hear better news regarding inflation. The market sentiment is expected to remain muted as investor’s seems to be in a vacation mode. With no major trigger expected to hit the stock market, benchmark performance is likely to remain muted. Hence, prudent investors need to wait for the right time and opportunity to generate better returns.
