The extension of Friday’s session witnessed low volume gains during early trade, wherein oil stocks witnessed change of hands on strength, while the triple digit achieved in international oil market became an excuse for relatively expensive trade. The fauji group stocks from fertiliser sector continued to invite buying from local quarters, however, the steam soon fizzled out with FFC being an exception due to prolonged stagnation and absence of follow-up support.
The high priced stocks witnessed off-loading thus wiping off the early gains, and massive decline in turnover with improving values that has become a trend continued to send horror signals to the local stake holders, thereby keeping the trading horizon quite narrow. High quantum trade through change of hands in BAFL however contributed substantially to the overall turnover that stayed almost 50 per cent at midday trade, allowing only the blue eyed brokers to cherish the commission revenue while others were mere spectators. The KSE 100 index closed at 12008.48 levels with the loss of 30.45 points, while KSE 30 index lost 2.47 points to close at 11380.51 levels. All Share index closed at 8304.29 levels after losing 21.34 points. Total 88 scrips advanced 142 declined and 99 remain unchanged out of total 329 scrips traded.
Absence of buyers on intervals did invite a colour of panic, thus forcing the benchmark to melt at high pace in post midday trade. Targeted activity in index heavy weights however did restrict unprecedented decline besides allowing the benchmark to manage 12000 psychological that was made to sustain due to early close on Friday.
The fears of further deterioration in fragile fiscal numbers becoming a reality with widening trade gap coupled with start of interest re payments to IMF early next year will have an adverse impact on the dollar reserves, wherein more than 50 per cent are financed by IMF through reserve support funding.
The long awaited CGT review probably stays the only hope for the revival of local equity market, Hasnain Asghar Ali at Aziz Fidahusein said.
