The market opened on a slightly positive note this morning however, the index failed to sustain this positive sentiment due to lack of triggers, low local participation and rumored foreign selling in the market. Trading volumes also remained weak as only 26 million shares were traded today. Nestle, Unilever and Engro were among the major losers in today’s session.
KSE 100 index closed at 11,166.10 with the loss of 95.94 points, while KSE 30 index lost 99.93 points to close at 10,668.67 levels. All Share index closed at 7,765.95 levels after losing 62.33 points. Total 75 scrips advanced 124 declined and 89 remained unchanged out of total 288 scrips traded.
Curtailed local strength that has certainly reduced the sustainable multiples kept the high priced stocks under pressure, wherein majority of the frontline stocks, as expected, failed to meet the market expectations of payout and earnings. A handful of companies stayed strong on earnings and payouts. Sell-off in the high priced stocks that stayed quite prominent during the session aggravated during the closing hour, mainly due to declining turnover and absence of buyers on intervals.
Cold ties with the US are likely to lead to tougher conditions at the local market. Release of committed fund from US and other loan extending international organization; unattended circular debt and energy crisis despite propagations; and devastating rains in the agricultural areas are things that are pushing the market participants on back foot.
An increase in the discounts in the stocks offering consistent dividend yields is unlikely to take any hit due to various threats visible in the local economy. Caution therefore stays the call with selling recommended in the front line stocks trading at comparatively high multiples said Hasnain Asghar Ali at Azizfidahusein.
Technical adjustment in dividend yielding stocks may however invite opportunities for both trading and placement, he added.
