Nervousness in regional and international equity markets and economies could not be ignored any more, thus pushing the local bourse in for a technical adjustment, wherein the high priced stocks witnessed major erosion. While, the market men tried to build a consensus for the realistic number for discount rate adjustment, as dips invited local corporate participants for a cautious accumulation mainly in those sectors and stocks are likely to feel relaxed incase the declining trend in local interest finds an extension.
The KSE 100 index closed at 11690.30 levels with the loss of 161.75 points, while KSE 30 index lost 167.75 points to close at 11198.80 levels. All Share index closed at 8107.60 levels after losing 107.15 points. Total 82 scrips advanced 169 declined and 86 remain unchanged out of total 337 scrips traded.
However, outstanding issues hitting the economy and financial circuit along with renewed and much dominating stance by US and an unsettled local currency disallowed the day traders to identify the bottom. While those opting for short selling, mainly in the high priced stocks, came in for short covering, thus besides offering interim support on dips contributed to the turnover as it tried to match the levels attained in previous session.
Lull, mainly due to local and international uncertainty might induce pressure in the rollover session next week; caution is therefore recommended, with accumulation in the dividend yielding stocks away from the visible threats of the economy, said Hasnain Asghar Ali at Aziz Fidahusein. While strength in high priced stocks can be looked for short selling, however official update on the government’s eagerness to improve turnover and price discovery mechanism, by making amendments in CGT mechanism, and above expectation rate cut, may allow the local bourse to perform well despite issues from international and local circuits signaling caution, he added.
