Selling spree was witnessed today at inflated levels after the Government of Pakistan (GoP) decided to ban exports of refined products of local refiners. National Refinery (NRL) and Attock Refinery (ARL) witnessed active selling throughout the day and closed down 1.7 per cent and 4.5 per cent respectively.
KSE 100 index closed at 11966.29 levels with the loss of 92.78 levels, while KSE 30 index lost 77.25 points to close at 11507.30 levels. All Share index closed at 8292.03 levels after losing 61.68 levels. Total 104 scrips advanced 152 declined and 111 remain unchanged out of total 367 scrips traded.
National Bank of Pakistan (NBP) closed down at its lower lock after few of its current executives were barred to travel abroad on allegations of misappropriation in bonus distribution from Workers Welfare Fund. Locals were seen selling refineries stocks and were buying fertiliser stocks on better than expected earning outlook in upcoming results.
Consistent off-loading by the offshore participants, absence of buyers on intervals, prolonged stagnation and declining volume with increasing value triggered an across the board selling, thus keeping the frontline stocks under severe pressure. Re-emergence of buyers mainly from the local circuit in the consistent dividend yielding stocks, reporting growth and having least impact of various infrastructural and financial issues being faced by other frontline stocks, did offer safe haven to the proceeds materialised through off-loading high priced and speculative stocks thus restricting the benchmark from otherwise a wider decline. While support by the respective group that was quite evident allowed the mid-tier stocks from fertiliser sector to lead the turnover, besides offering trading opportunity to the short term traders, the benchmark however failed to sustain the psychological 12000 mark.
Hasnain Asghar Ali at Aziz Fida Husein said “inability of the local bourse to invite follow-up support due to curtailed local strength and massive reduction in number of participants, thanks to conservative CGT mechanism.” “The outstanding economic and financial issues and now without IMF cover along with rising mercury on political grounds, tend to overpower the triggers, those allow the local equities to gain grounds as a result of snap rallies, being selective and calculative, therefore stays the call,” he added.
