Recovery in technically over sold regional and international bourses allowed the local syndicate, operating from both local and off-shore circuits, to stage a rally, thus leading to an air pocket opening in the benchmark as well as in various high priced stocks.
The index registered triple digit gains in initial trade, but the absence of follow-up as depicted by persistently declining turnover from last week disallowed the benchmark to sustain the early gains. Even dividend yielding stocks, which were reporting growth in earnings, witnessed profit taking and corporate sell-off, while low volume price erosion, due to low turnover and vacuum most probably created by the syndicate, forced the red numbers to re-surface in the closing hours. The KSE 100 index closed at 11262.04 levels with the loss of 2.91 points, while KSE 30 index gained 47.89 points to close at 10768.60 levels. All share index closed at 7828.28 levels after gaining 1.90 points. Total 120 scrips advanced 89 declined and 79 remain unchanged out of total 288 scrips traded.
Despite air pocket opening in various high priced stocks, the sellers stayed cued up at market rates, therefore, there stays a strong conviction that when the dust in international economies settles, the local horizon (that is to stay polluted in economic, financial and political issues, coupled with deteriorating law and order situation along with persistent decline in the turnover) is likely to lead reduction in sustainable PE multiples. This is essential tool for identifying the fair value due to curtailed local strength, caution is therefore advised, said market analyst Hasnain Asghar Ali.
