After last week’s volume craze in which daily volumes were consistently above the 70 million share mark, the market took a breather to start the week as volumes slipped to 55 million shares. The index once again mimicked global markets as it lost 53 points in today’s session.
KSE 100 index closed at 11708.25 levels with the loss of 53.72 points, while KSE 30 index lost 27.04 points to close at 11193.89 levels. All Share index closed at 8124.75 levels after losing 34.37 points. Total 108 scrips advanced 156 declined and 105 remain unchanged out of total 369 scrips traded.
Engro was back on the rumour mill today and not in a good way as news circulated of a potential gas outage at the EnVen plant. The unconfirmed news sent the share price tumbling as it finished 4 per cent below its weekend closing price. PSO also ended up in the negative zone as its receivable woes continue to remain unresolved. With the monetary policy expected to be announced by the end of the week, investors are expected to remain lackluster until or unless the rate cut expectations rise above the current 50bps consensus.
Among the reasons of the red activity at the market were declining trend in international and regional equity and commodity markets, tough statements from international circuits and unsettled float from September future became the reasons. Timely low quantum price influx in the index heavy weight OGDC, however, reduced the intra-day losses on the benchmark besides restricting otherwise a substantial decline.
Optimism on much anticipated triple digit decline in local interest rates, followed by declining NSS rates, likely resolution of circular debt and relief on CGT kept the resident participants in search of good bargains, mainly in the stocks wherein growth and dividend yields have been consistent despite the financial and infrastructural woes. However inability of the high priced stocks to find sustainable multiples kept the pressure intact, high chances of price erosion due to low volume and prolonged stagnation forced the weak holders to surrender while the corporate liquidity stayed in search of extreme declines for making short term bets.
Hasnain Asghar Ali at Aziz Fidahusein said “with cautious stance intact companies away from various visible threats can be looked for placements on dips, while likely beneficiaries of trade enhancement with India and those benefiting from India’s support in EU can be looked for short term bets on dips. Low volume strength in high priced stocks and the stocks facing wrath of high and expensive debt and gas curtailment can be looked for off-loading, even short selling as the stance will be a calculative hedge against long positions in comparatively safer stocks,” he added.
