What had been shaping up to be the buildup to a pre result rally over the last few days suddenly turned into an all out carnage session as the KSE-100 index shed 2.3 per cent, and lost 272 points. The impetus for this disaster was massive selling by foreign investors who appear spooked by negative economic forecasts of the local economy as well as news of a planned US military operation within Pakistani borders.
The KSE 100 index closed at 11640.46 levels with the loss of 271.73 points, while KSE 30 index lost 329.23 levels to close at 11095.49 levels. All Share index closed at 8077.43 levels after losing 178.20 points. Total 84 scrips advanced 173 declined and 78 remain unchanged out of total 335 scrips traded.
What should have been a positive day for Engro due to a legal ruling in its favour was swept away by the mass pandemonium enveloping the market. Oil titans OGDC and PPL were the main contributors towards the overall index’s decline with usual index booster FFC joining their ranks. Today’s session has put a damper on the upcoming results season and we promulgate a cautious stance at this point, said Ali Hussain at HMFS.
The popular slogans in the arena that the rally initiated by brokers and singled out financial institutions has come to an end, added to the misery of weak holders that transformed in the index registering an intraday adjustment of more then 3 per cent. Short covering along with cautious support by the government treasuries did invite support thus allowing the sinking benchmark to show some resilience.
Since various high price stocks currently failing to find sustainable multiples are likely to stay under pressure, caution continues to stay the call, while the stocks having a healthy payout history allowing decent growth patterns (away from various threats visible in the local circuit although less in number) which will continue to invite accumulation mainly by the equity specific funds,” said Hasnain Asghar Ali at Aziz Fidahusein. “It is therefore recommended to stay selective and calculative for both short and long term, while strength in various speculative and high priced stocks on snap rallies will continue to offer short selling opportunities, mainly as a hedge against various long positions,” he added.
