Local equity market continued to stay under a tremendous pressure, adding to the misery the renewed US stance of action against terrorist invited tremors, thus forcing the locals to follow the offshore participants. Fierce sell-off amid absence of buyers on intervals added a colour of panic, which led to massive low volume price erosion mainly in the high priced stocks, while the unprecedented selling did invite trading float from the local circuits.
Although high discounts in singled out stocks invited cautious accumulators on dips, low quantum and limit bids failed to impact the overall sentiments that stayed extremely nervous. Day end across the board short covering and corporate support in selective stocks allowed the index to stage a decent recovery, while support by the respective group that was quite evident allowed the turnover to match.
The KSE 100 index closed at 11525.25 levels with the loss of 159.90 points, while KSE 30 index lost 223.62 points to close at 10901.99 levels. All Share index closed at 8000.65 levels after losing 106.94 points. Total 69 scrips advanced 169 declined and 94 remain unchanged out of total 332 scrips traded.
With various sensitive fronts both on macro and micro in a fragile state, the local equity participant either corporate or high net worth is likely to wait for an increase in discounts for placements, said Hasnain Asghar Ali at Aziz Fidahusein. While expensive stocks offering low yields and trading at high multiples and those suffering due top visible threats in the economy will continue to face off-loading, thereby leaving opportunity of long and short term placements only in handful stocks. Caution therefore continues to stay the call, he added.
Although corrections are termed as an opportunity for collection of valuable stocks at discounts, fragile economic and financial issues, energy short fall, along with high temperatures on political front, wherein various political pundits forecasting further deterioration, increase in troops on western borders which may trigger spark any time, are certainly too many issues to keep in check by the participants of the local equity markets. He further said that a substantial decline in number of market participants that adding to the misery due to conservative collection mechanism of CGT.
