The week started with a suicide blast in the city, that led to a nervous opening in the local bourse, however intent of the authorities re-printed regarding settlement of ballooned circular debt that has undoubtedly impacted entire financial circuit of the economy that influenced a bull-run in PSO. Inability of the news to have a wider impact clearly reflects low confidence or absence of official support, thus disallowing even PSO to stand strong for the day. The day-end low volume sell-off, besides keeping the benchmark under pressure, forced the main board to close below market average for the day.
The KSE 100 index closed at 11356.64 levels with the gain of 3.18 points, while KSE 30 index secured 16.92 points to close at 10933.67 levels. All Share index closed at 7889.90 levels after gaining 0.01 points. Total 101 scrips advanced 154 declined and 83 remain unchanged out of total 338 scrips traded.
Although fertilizer stocks mainly from Fauji group along with support of respective group in other listed companies of the sector allowed the sector to invite trading volume, likely decline in fertiliser off-take in the new harvest due to the recent downpour led flooding did invite off-loading in selective stocks, mainly in the manufactures of specialised products produced sufficiently to cater local demand. However, since the fast selling product of the sector is still being imported, the companies having the product “Urea” as the main produce invited placements mainly in the Fauji group company Urea, due to consistent growth and improving dividend stream and little impact of gas curtailment.
While selective stocks continued to trade volumes on back of swapping, the frontline stocks continued to face renewed selling on strength, as majority participants stayed confused over the news of exit from IMF program. There may be various negative repercussions regarding professional management of country’s economy, besides uncontrolled government borrowing and a regime of fudged economic numbers as suited for dressing up economic indicators, said Hasnain Asghar Ali at Aziz Fidahusein. “The relief from IMF’s dictation is likely to relax the ongoing tight monetary policy regime, along with likely relief from stringent CGT and its unrealistic implementation mechanism, that has severely dented the local equity market, caution was however quite evident,” he added.
