After a mixed day at the local bourse the index fell just short of the 11,000 mark. The market witnessed a sporadic day with the index hitting a low of 10,835 points and even crossing the 11,000 mark at one point before settling down.
The KSE 100 index closed at 10,901.76 levels with the loss of 39.32 points, while KSE 30 index lost 76.18 points to close at 10,-418.57 levels. All Share index closed at 7,581.00 levels after losing 30.58 points. Total 64 scrips advanced 136 declined and 84 remained unchanged out of total 284 scrips traded.
Investors were largely concerned over NBP’s recent quarter provisioning and Engro once again become a victim of investor ire after major viability concerns. Governmental oil concerns OGDC and PPL tried to control the sliding index with their performance along with MCB. LOTPTA results were well received by investors, though analysts’ expectations were comprehensively beaten. “With merely two trading days left before the religious holidays, we may see investors react cautiously towards investing,” said Bilal Asif, Head of Research at HMFS.
Post result sell-off is likely to stay the trend in post holiday sessions, wherein various high priced, relatively cornered and speculative stocks, are likely to announce the earnings, thereby keeping the likelihood of further slump on the higher side. Mainly due to various threatening factors on political, economic and financial front, dips in the stocks offering consistent dividend yields and away from various visible threats on sensitive fronts can be looked for placements of equity specific funds.
While the financial sector is comfortably placing liquidity in T-Bills, the high net worth and other liquid participants are seemingly comfortable in placing funds in foreign currencies, as depicted by fast loosing value of local currency, mainly due to non conducive investment environment.
Hasnain Asghar Ali at Aziz Fidahusein said that due to deteriorating law and order situation, energy shortfall, and high interest rate environment, the investors are being forced to opt for comparatively secure investment modes.
