|
|
|
| March 19, 2007 | Monday | Safar 29, 1428 |
Reference against chief justice keeps market unsettled
SHARE market last week remained unsettled as investors were not inclined to make bigger commitments in the developing scenario apparently awaiting the dust raised by a chain of events on the political front to settle down.
But it goes to the credit of broader market, which performed credibly well against heavy political odds. Thanks to its inherent strength aided by positive news from the corporate front.
However, the near-term outlook appears to be a bit bearish as the background news is not that encouraging.
The stocks earlier were terribly weighed down by the standoff on legal front followed by presidential reference and the suspension of the chief justice of the Supreme Court for alleged misconduct.
The KSE 100-share index moved up and down but managed to recover most of the initial fall on the strength of the leading base shares and finished with clipped losses of 39.09 points at 11,374.03 as compared to 11,413.12 a week earlier. On the other hand, the KSE 30-share index fell by 224.74 points at 14,252.58.
The future near-term outlook appears to be a bit bearish as the legal battle could take any turn after the hearing is resumed and on the reaction of the political parties to the developing situation.
Click to view the larger image
Price movements of even sound scrips were highly erratic as no one could precisely predict about the impact of presidential reference against the chief justice on the share business at least for the near-term.
Confusions prevailed in the trading hall as both short-term dealers and some foreign investors tried to pack up until the situation on the political front clears.
However, despite falling daily volume, reflecting the absence of big ones, some of the financial institutions and speculative traders shifted their daily intake to low-priced shares making apparently hedge against larger fall in an uncertain conditions.
Various rumours remained afloat throughout last week in the backdrop of lawyers continued protest, but the broader market managed to save itself from a major fall.
Higher corporate announcements from some leading companies, notably Adamjee Insurance and Pak-Suzuki’s 50 per cent bonus shares also played an important role in keeping the underlying sentiment a bit intact.
“Investors apprehensions that the CJ issue could take a political turn, kept them away from taking fresh positions even on the blue chip counter,” analysts said.
The legal battle that would follow the government action may take steam out of the market for a considerable period of time and the negative developments during the proceedings of the presidential reference against the chief justice could work against the underlying sentiment, they said. But some others attributed the pause as psychological and hoped that investors would be back in the market as early as tomorrow as basic fundamental points to a bull-run.
There were no signs of strong weekend rally after the trading resumed as leading investors and institutional traders stayed on the sidelines awaiting the general reaction about the happenings of the last weekend, but the mid-session witnessed stray covering purchases on selected counters under the lead of cement and some leading oil shares.
FORWARD COUNTER: Unlike the ready section, future market performed well as leading shares managed to finish further higher under the lead of PSO, National Bank, Bank Alfalah, Pakistan Petroleum and some others. Amid active deals, D.G. Khan Cement was an exception, which failed to sustain early gains on late selling.
—Muhammad Aslam
|
|
|
|
