KSE fails to consolidate, dwindles by 21 pts | Pakistan Today

KSE fails to consolidate, dwindles by 21 pts

Low volume strength on the opening day of the month did invite across the board off-loading, initiated mainly by local financial groups. Meanwhile, decent discounts in dividend yielding stocks, sustaining the track of growth, kept the investors’ interest alive. However, dusty arena disallowed the benchmark to consolidate.
The KSE-100 index dwindled 21.65 points and closed at 12,035.89 levels, while total volume and total value stood at 54,587,692 and 3,444,265,484 respectively. The KSE-30 index squeezed 32.59 points to close at 11683.76 levels, while the All Share index closed at 8,447.32 levels after losing 21.04 points. Out of total 363 scrips, 61 scrips advanced, 219 declined and 83 remain unchanged.
Selective accumulation and singled-out support by OGDC, contributing almost 50 points to the benchmark, allowed the index sustain 12,000 despite losing 0.25 percent on closing basis. Volumes however, stayed low as budget cautions the investors. Top symbols of today’s session were Lotte Pak PTA, Fauji Fertiliser, Azgard Nine, Nishat (Chunian), Bank of Khyber, SilkBank, Oil and Gas Development, Fauji Fert Bin Qasim, Jah.Siddique and B.O.Punjab.
Although, the amount of leverage buy has been low (F-7), window for qualifying for leverage at the end of the session is frequently being used, thus infusing confidence amongst leverage players incase trades are not squared due to unfavourable rates.
With the result season almost over, resident participants were seemingly re-adjusting themselves for the federal budget and further tightening of the monetary stance. Lenient view on CGT, therefore, stays the only trigger, if considered, thereby forcing the index to plunge into red zone.
Hasnain Asghar Ali at Aziz Fidahusein said that need of the hour stays the much proposed change in implementation mode of CGT in order to allow the local bourse perform at its potential and attract international participants. Dips in fundamentally strong large cap stock will allow various opportunities, likely to invite renewed buying interest, thus recommending cautious buying mainly from the equity specific funds, he added.

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