Rising political tensions did not prove to be a welcome sign for the local bourse which is already plagued by low turnover and sell-ff by local corporate participants. The investors were exhausted due to dumping by off-shore participants, which led to massive low volume price erosion and consequently disallowed success to syndicated activity and restricted decline in high priced stocks.
The benchmark failed to reflect the wider sentiment despite triple digit decline, as the impact was much stronger than reflected as the market remained in the red zone throughout the day. The KSE 100 index closed at 12,265.47 levels with a loss of 98.59 points and total volume stood at 50,324,604 along with the total value of 3,642,672,794. KSE 30 index lost 137.19 points to close at 11,680.20 levels and All Share index closed at 8,500.03 levels after losing 99.28 points. Total 76 scrips advanced 176 declined and 128 remained unchanged out of total 380 scrips traded.
The sell-off was mainly witnessed in high priced stocks, which were unable to sustain high valuations due to curtailed local strength and absence of follow-up support. Besides this other stocks facing rising input cost, declining local and export demand, gas curtailment and high debt portfolio added to the woes of KSE. The handful of companies that had till now maintained their attained values due to favorable announcements also started to stagger.
This indicates erosion, while consistent dumping by the off-shore participants is likely to force accumulation by local quarters. This was probably executed when the buy orders were being routed through off-shore channels along with likelihood of collateral holdings to join the decline. Hasnain Asghar Ali at Aziz Fidahusein said a technical bounce back might allow the major losers to recover, however speculative recovery that may not find support of turnover will offer chance to reduce holdings. Trapped in the above mentioned wrath, identified stocks may however continue to invite accumulation on dips, he added.
