The KSE-100 index recovered a 100 odd points thanks to an eventful second half but closed the day at 11,028 levels, down 111 points. Oil and fertiliser stocks invited fresh buying from large local institutions at cheap price multiples and witnessed significant recovery from their lows in the absence of major foreign selling.
Almost all main banking stocks closed in the ‘red’ as Moody’s reiterated their outlook for Pakistan banks as negative. PPL managed to close in positive due to the expectations of higher earnings on account of an increase in productions flows. The volume leader of the day was Engro with 4.9m shares.
The index was poised for another brutal pounding today as morning news reports suggested that containing the fiscal deficit below 7 per cent is becoming increasingly unlikely. To add insult to injury, Moody’s issued a report reiterating its negative stance on the local banking industry. Add all that to the prevailing memo gate scandal rocking the political establishment’s foundation and the confirmation of the USD700m US aid freeze, the KSE-100 index did not stand a chance as the index plummeted 111 points to close at 11,028 points.
Volumes clocked in at 47m shares with Engro topping the volume leader board with 4.8m shares. With its share price below the Rs100 mark, the script has been a poster child of investor disdain in recent times. With the memo gate scandal ripening with each day as new details are revealed, the market’s downward spiral appears to have no definitive end in sight, said Ali Hussain, Sr. Investment analyst at HMFS.
The KSE 30 index closed at 10154.14 levels with the loss of 97.78 points, while All Share index closed at 7638.56 levels after losing 76.59 points. Total 54 scrips advanced 159 declined and 104 remain unchanged out of total 317 scrips traded.
