With MQM calling for a day of mourning on account of the massive bloodshed haunting the port city since last week, local bourse reduced its trading hours till 12:30 pm as a tension prevailed in the city. Trading activity was akin to that of a ghost town as the market generated a feeble 22 million shares with the index shedding 52 points.
The KSE 100 index closed at 10842.26 levels with the loss of 51.89 points, while KSE 30 index gained 3.71 points to close at 10394.79 levels. All Share index closed at 7549.52 levels after losing 29.77 points. A total of 85 scrips advanced, 81 declined and 73 remain unchanged, out of the total 239 scrips traded.
POL witnessed a renewed buying interest and jumped 2.4 per cent over market rumours that the company will announce a stock dividend along with a heavy cash payout. Among fertiliser stocks, FFC jumped 2.5 per cent due to investor interest in dividend of Rs4.75 per share as today (Wednesday) is the last day that the stock trades with the dividend.
OGDC, which incidentally announced its AGM today, accounted for 47 points towards the red zone with selling pressure weighing heavily on the scrip. Engro touched a bottom of Rs112.5 as investors tried to grab the opportunity to avail it at a discounted price. Despite better volumes in NBP, investors are skeptical about the fate of the bank in light of its current results. With merely 4 days left before Eid holidays begin, we foresee a dry spell prevailing, said Ali Hussain, Senior Investment Analyst at HMFS.
In the cut short session, the benchmark continued to sink with regional and international markets in an uncertain mode, while the deteriorating law and order situation along with various financial and economic grievances kept local participants in a bearish mode. Search for sustainable multiples due to clipped local strength kept frontline stocks under pressure, as low volume strength in various stocks was identified as oversold. On back of support by government treasuries, however, the index was restricted from undergoing an unprecedented decline, thus allowing it to remain in the territory of 10700.
Hasnain Asghar Ali at Aziz Fidahusein said that caution, therefore, stays the call and upcoming sessions might witness snap rallies initiated by the syndicate both from the retail and corporate circuit along with support of respective groups might allow low volume strength to the benchmark. Long and short term trading positions however should only be taken in selective stocks which are likely to escape the visible internal and external threats and offer consistent dividend yields, he added.
He further said that constant dumping through off-shore channels, fast losing value of the local currency, unattended financial and economic issues and rising temperatures on the political front will continue to haunt local participants while they search for sustainable multiples.
