Local equities undergo technical adjustment as KSE loses 106 points


After back-to-back gains the local bourse underwent a technical adjustment, as the initial gains supported by OGDC did allow the index to breach 12000 psychological and sell-off that was quite visible from the early hours overpowered the low volume strength in OGDC, declining regional and international equity and commodity markets along with consistent dumping by off-shore participants disallowing even the cued up buyers from previous session from resisting the incoming float.
Volume leaders from previous session from fertiliser sector underwent technical correction too, while intra day volatility of almost 3 per cent during the session kept the day traders active through out the session. The KSE 100 index closed at 11776.09 levels with the loss of 106.16 points, while KSE 30 index lost 100.50 points to close at 11142.90 levels. All Share index closed at 8155.69 levels after losing 60.15 points. Total 126 scrips advanced 186 declined and 25 remain unchanged out of total 337 scrips traded.
Massive turnover in fertiliser sector generated mainly due to stock swapping by the local syndicate of brokers and corporate participants kept the sector stocks in the limelight wherein some managed upper locks while some were seen trading at the lower trajectory during the session. However, the show of strength was quite prominent in Engro stock despite various issues such as gas curtailment and government actions making the stock a risky affair, nevertheless the stock managed to trade at the upper lock for most part of the session.
Hasnain Asghar Ali at Aziz Fida Husein said with nod of caution intact, accumulation is recommended in the stocks offering consistent in reporting growth and payouts, although syndicated efforts mainly of the local participants might allow various stocks to stage hefty trading and generate high volume. Stocks trading at high multiples that are likely to continue to face wrath of gas curtailment and various regulatory and pricing issues need to be avoided for the time, he added.