Stock market witnesses low volume bounce-back | Pakistan Today

Stock market witnesses low volume bounce-back

The day witnessed a large sell-off after a period of prolonged stagnation. The melt down, which was initiated by high priced stocks forced the benchmark into the red zone. However, the slump was well countered by syndicates of both corporate and high network participants, wherein various main board stocks (both speculative and dividend yielding stocks) witnessed a low volume bounce back, thus offering some joy to traders. Although the activity did allow the benchmark to breach and sustain the 12,500 mark, most participants looked indecisive.
The KSE 100 index closed at 12,555.96 levels with gains of 71.79 points and total volume stood at 50,504,088 with a total value of 2,755,551,470. KSE 30 index gained 132.50 points to close at 11,727.39 levels and All Share index closed at 8703.30 levels after gaining 48.42 points. Total 114 scrips advanced 107 declined and 94 remained unchanged out of total 315 scrips traded.
With the number of participants reducing quickly due to the implementation mechanism of CGT and curtailed local strength, the frontline stocks are likely to readjust their trading multiples because of this issue which has forced the volumes to come down to dead levels.
However a syndicate (that operates from both local and off-shore accounts) will continue to invite snap rallies in widespread sectors and stocks, thus keeping the traders in search of such trades, said Hasnain Asghar Ali at Aziz Fidahusein. While cautious participants are likely to focus on selective stocks that are not affected by issues like gas curtailment, high debt portfolio, and declining export demand, he added.
The news regarding reservations expressed by US on production of Ammonium Nitrate in Pakistan, a major fertilizer input, added pressure on fertilizer manufacturers. However despite limited options for equity market participants, high discounts in various stocks away from various pressures emerging from within and outside the economy continued to invite cautious accumulation. Dormant activity clearly disallowed follow-up, thus leaving the benchmark to the syndicate that continued to maintain the prices of their targeted stocks and stabilize the benchmark through low volume strength.

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