Sell-off by the offshore participants restricted the jubilations from entering the second session of the trading week, while sector and stock swapping by local corporate participants, mainly to maximise the gains did pour in decent volumes. However declining volumes with increase in values, that has been a prominent feature in recent rallies, restricted the market participants from taking long term positions, thus keeping the focus on short term trades. Accumulation in dividend yielding stocks mainly those away from the visible threats also restricted the benchmark from otherwise a wider decline.
KSE 100 index closed at 12058.74 levels with the loss of 33.58 points, while KSE 30 index lost 79.95 points to close at 11554.39 levels. All Share index closed at 8351.52 levels after losing 23.06 levels. Total 152 scrips advanced 191 declined and 24 remain unchanged out of total 367 scrips traded.
The recent move by the SBP may have serious repercussions incase contingency plan is not put in place right away, seemingly overpowered by the likelihood of jump start in the economy. However benefits of the recent decline in interest rates mainly in the manufacturing concerns, away from the threat of prolonged gas curtailment, did invite renewed buying on dips. Beneficiaries of increase in trade numbers with India and consent given by the neighbour of supporting local textile exports certainly kept the buyers in search of bargains in textile and cement stocks, mainly on dips, along with the fertiliser stocks thus offering various short term trading opportunities to the market men.
Hasnain Asghar Ali at Aziz Fida Husein said “with a nod of caution intact accumulation is recommended on dips in dividend yielding stocks, while low quantum strength in speculative stocks on earnings euphoria that may offer short-term trading opportunities, strength will continue to offer various sector and swapping opportunities.” “Volatility on political and geo-political fronts may influence the local bourse incase of prolonged stagnation,” he added.
It is also because of the fact that investors are cautious over sudden rise of stocks on Monday, Monday rally created a fear among investors that it may lead to profit taking on next day and that exactly happened. Now with low volumes, bears are running the show.
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