Low volume led price erosion during early hours pushed the index deep in the red zone on sell-off in high priced stocks along with fertilisers stocks, which were losing values on gas load shedding fears. But all this was indeed well countered by speculative activity in the group specific stocks, wherein corporate and groups support in the listed stocks allowed the bleeding stocks some respite. While the propagation of friendly ties with India did inspire consolidation in cement along with short term spike in front line banking and textile stocks, absence of follow-up as reflected by low volumes however disallowed any sensation.
The KSE 100 index closed at 11994.01 with the loss of 14.47 points, while KSE 30 index lost 22.44 points to close at 11358.07 levels. All Share index closed at 8293.44 levels after losing 10.86 points. Total 103 scrips advanced 134 declined and 113 remain unchanged out of total 350 scrips traded.
Although the activity was well timed and directed in terms of the end buyers as the short term participants did enter the arena for short term trade, rumours of resumption of gas supply to the most hard hit fertilizer company along with rigorous and volumetric activity in the stocks was made to inspire similar activity in various frontline expensive stocks, mainly to tempt sideliners. Low volumes however seemingly tempted short sellers along with some from both corporate and high net worth, not part of syndicate, as they looked anxious to book profits.
Hasnain Asghar Ali at Aziz Fida Husein said choppy activity with low volumes will continue to signal alarm bells, although intra-day spur to execute block trades on strength may trigger short term trading signals, however under the prevailing scenario intra-day strength will continue to provide short term off-loading/short selling opportunity, mainly in the stocks facing tough time due to gas curtailment.
Financial and political horizon likely to stay gloomy, so dips can be awaited for placements in the stocks away from the visible threats prevailing in the economy, he added.
