Deteriorating law & order situation, roll-over pressure amid extremely low turnover and dumping by off-shore participants (realizing that more then Rs2 billion worth of main board stocks off-loaded previous week) exhausted the local syndicate. Consequently this disallowed aggressive resistance to selling pressure.
The KSE 100 index closed at 12,440.10 levels with the loss of 36.67 points and total volume stood at 24,026,914 along with the total value of 1,329,438,106. KSE 30 index lost 27.03 points to close at 11,890.37 levels and All Share index closed at 8,621.22 levels after losing 23.38 points. Total 146 scrips advanced 151 declined and 25 remained unchanged out of total 322 scrips traded.
Growing reservations regarding suspended IMF program, FBR’s claim regarding revenue collection numbers, unclear US stance regarding dispatch of committed amount, and various financial and economic matters suggest caution. Earning euphoria might continue for a while mainly due to propagation despite the fact that, except for singled out stocks, wider front liners and mid-tier stocks are unlikely to report earnings as per expectations. Due to complicated working environment, decline in local strength and squeeze in volume the front line stocks will not be able to sustain the historic payouts.
However, the companies that are likely to continue on the path of growth and are away from various visible threats continue to invite renewed buying, said Hasnain Asghar Ali at Azizfida Husein. Being selective and calculative is therefore recommended both for trading and placement, while speculative activity and syndicated movement may offer short term trading opportunities, he added.
KSE succumbs to pressures
