Panic was witnessed today at KSE due to continuous selling by off-shore investors on rising concerns over US credit rating outlook and the political deadlock over debt ceiling limit. KSE 100 index closed at 12,098 level, down by 167 points with 64 million shares traded today, taking the cumulative loss to 379points (-3.04 per cent) in the last four sessions.
Despite brief recovery profit taking in leading bellwether scrips pushed the index south as tensions between the government and judiciary worsened. However, accumulation at lower level kept the index afloat, halting further retrenchment with 64 million shares traded during the day. Foreign investors selling interest continues to dampen local sentiments further. After a recent bearish spell, bellwether stocks including POL, FFC, FFBL and ABL were available at a steep discount to fundamental values and may drive index performance in coming trading sessions
Imposition of Gas Development Surcharge (GDS) by government may increase gas prices for gencos, cements and fertilizer units in the country which may put pressure on consumers. FII’s were rumored to be sellers in fertilizer and energy stocks while local institutions were buyers in energy and banking scrips.
Hasnain Asghar Ali at Aziz Fidahusein said that with limited options mainly due to gloomy economic, financial, and political horizon and volatile law and order situation in the country being “selective and calculative” is the best strategy for equity funds – both for retail and corporate desk. Speculative activity based on technical calls with low volumes might be witnessed in upcoming sessions, thus calling for off-loading high pried stocks and stocks facing tough time due to various issues, he added.
Karachi Stock Exchange down by 167 points
