Steam fizzles out from the over heated run-up that was undoubtedly initiated by the fertiliser sector with most triggers in upcoming period already priced in, 12000 psychological became an excuse for an across the board profit taking. However despite sell-off certain stocks from fertiliser and banking sector did manage to invite accumulation on dips and managed to stay in green zone, while various high priced stocks and the stocks facing various infrastructural issues along with debt burden found tough to resist the incoming corporate and trading float.
KSE 100 index closed at 11868.17 levels with the loss of 65.11 points, while KSE 30 index lost 42.27 points to close at 11390.37 levels. All Share index closed at 8227.85 levels after losing 42.01 levels. Total 122 scrips advanced 166 declined and 91 remain unchanged out of total 379 scrips traded.
Although, much talked about improvement in trade ties with India, impact, of likely decline in local interest rates, and resolution of circular debt will continue to offer short term triggers. Across the board activity and follow-up support calls for major triggers, thus keeping the nod of caution intact.
Hasnain Asghar Ali at Aziz Fidahusein said it is therefore recommended to build both short and long-term positions in the stocks having consistent dividend yields and offer consistent growth on the rising demand of the core produce with out supply and infrastructural threats, while stocks awaiting liquidity to overcome expansion and dividend constraints to be accumulated upon full and final settlement of ballooned up circular debt. “Although very few stocks are likely to make it through the litmus test, caution calls for selective activity, at least till ‘smooth sailing’, while low volume strength in the speculative and high priced stocks can be looked for short selling,” he added.
