Incorporating domestic and international fundamentals, local benchmark continued to witness a slow trend where the index has lost around 407 points in the preceding three sessions, resultantly the KSE lost Rs98 billion in three days.
Volume on Tuesday hit the lowest level for the year. Furthermore the benchmark breached 12,000 level and continued to stay below the 12,000 level.
During the intra day index hit the 12,000 level but investors with bearish frame of mind continued to dictate terms at the local stock market. Amidst local political and global economic uncertainty the investors kept away from the market. It is believed that investors are not willing to provide a helping hand to the index.
Buying activity was witnessed in POL, MCB and LUCK at dips which kept the broader market in check. Meeting between IMF officials and Ministry of Finance is expected to be held in September to decide the fate of remaining two tranches of Standby loan Agreement. FII’s were rumored buyers in banking sector while locals were buyers in energy and cement sector. The KSE 100 index on Thursday closed at 11,846.16 levels with the loss of 95.56 points, while KSE 30 index lost 60.97 points to close at 11,228.47 levels. All Share index closed at 8,215.17 levels after losing 64.13 points. Total 72 scrips advanced 136 declined and 87 remain unchanged out of total 295 scrips traded. The market capitalization on Tuesday was Rs3.23 trillion, while it was Rs3.156 trillion on Wednesday and Rs3.132 trillion on Thursday.
Unprecedented selling mainly from the local quarters dragged the benchmark way below 200 day moving average of 11,882, the level was being considered a bottom by various analysts. Since the on-slaught included price erosion in OGDC, the intra-day loss of 180 points disallowed the index to honor the major support levels. Day end short covering did allow low volume recovery to address the technical thirst, negativity however stayed intact for the day. The recent sell-off is also seen as a panicked move wherein the stocks held as collaterals seemingly joined the flow and they were being duly placed at available rates. Since rates of various less liquid stocks were artificially stabilized at current levels, off-loading seemingly became a nightmare, thus leading to a wide spread negativity.
