The bourse continued its dismal performance during the New Year by further shedding 0.8% with low volumes of 21m shares. Investors chose to remain sidelined on the back off growing tensions between the judiciary and government of Pakistan.
Energy heavyweights, PPL and OGDC, came under selling pressure as rumours of foreign selling persisted in the market. Even news regarding FATIMA increasing its urea price in line with ENGRO could not generate any excitement, while FFC is expected to follow suit. Triggers regarding the NRO case and a meeting between SECP and FBR regarding the circular debt issue remain on the investors’ mind. Market participants also awaits the news flow regarding the circular debt issue.
The activity at the bourse floored with a mere 20m shares traded during the day amidst uncertain political scenario and economic concerns fueling fear of foreign outflow. Yet again influential index heavy stocks determined the direction of the index within volumes as index came tumbling to critical 11k level. With government at loggers head with army and judiciary, investors opted for a wait and watch strategy drying out volumes from the market. Oil and gas sector stock resonated some optimism on the back of the news that inter-corporate debt would be transferred to power holding company once again. ‘We reiterate a cautious stance with exposure in select stocks as risk loom large,’ said Salman Vidhani at HMFS.
The KSE 100 index closed at 11040.30 levels with the loss of 85.05 points, while KSE 30 index lost 41.39 points to close at 10124.20 levels. All Share index closed at 7661.66 levels after losing 55.20 points. Total 70 scrips advanced 112 declined and 120 remain unchanged out of total 302 scrips traded.
