Delay in settlement of the worsening circular debt despite official commitment, heightened tension with the US, tumbling international/regional economies and commodity markets, along with the fast deteriorating value of local currency became an add-on while roll-over pressure led to an extended decline. Wherein both local and off-shore participants came in for fierce off-loading, unprecedented selling in high priced stocks even on intraday recovery disallowed benchmark from displaying strength, thus indicating more ugly sessions in the running week.
The KSE 100 index closed at 11265.03 levels with the loss of 341.83 points, while KSE 30 index lost 344.50 points to close at 10751.66 levels. All Share index closed at 7820.68 levels after losing 230.16 points.
Total 43 scrips advanced 203 declined and 86 remain unchanged out of total 332 scrips traded. Sell-off led by the frontline and high priced stocks struggling to identity sustainable multiples witnessed massive price erosion thus pushing the benchmark down by almost 4% during intra-day trade. Short covering and accumulation mainly by the government treasuries restricted the fall thus averting an ugly painting of an across the board lower locks. Cherry picking from thereon did allow the benchmark to stage intra-day recovery, however mainly due to roll-over pressure the sentiments stayed negative. The reaction that is awaited from US kept the likely liquidity on hold, thus disallowing any adventures, even though the resident participants did make attempts for inviting sensation, the participants from the external orbit stayed unmoved and kept the benchmark in deep red for most part of the session. The glut accumulated by the short term participants mainly on the commitment of a resolution of decades old circular debt issue which is certainly an addition to the roll-over amount, thereby suggesting pressure in short term. However easing up of tensions with the US might allow the trading float and roll over float to settle without further dent, caution however stays the call with dips to be looked for cautious accumulation in consistent dividend yielding stocks, said Hasnain Asghar Ali at Aziz Fidahusein.
