KARACHI: Following an earlier day of bull run, the stock market remained on a roller-coaster ride on Friday where the KSE-100 index traded between the intraday low and high of 129 points and 149 points.
The market started on a firm footing as it tried to maintain the gaining momentum and remained in the green throughout the first session. But as investors were loath to carry positions over the weekend, the index finished with a loss of 72.93 points (0.23 per cent) at 32,111.10.
The excitement over the declining bond yields that had seen the market take a giant leap forward a day earlier lost its charm as investors’ got gloomier news on the economic side. The IMF’s affirmation on economic stability did little to change investors’ mood.
The news of temporary closure of Indus Motor plant and for varying days by a few other automobile producers due to build-up of inventory conveyed the sense of disruption in demand, which would directly affect corporate profits. It also smacks of ballooning inflation.
Growing political noise also was scary. While local institutions were net sellers, foreigners bought shares worth $1.57 million due mainly to FTSE rebalancing. Other major buyers were ‘individuals’ of $2.13m, hopefully not the small investors, but long-term value investors.
The trading volume increased further from 137m shares to 153m shares. The traded value on the contrary witnessed a slight decline of 1.3pc to $37.2m from $37.7m a day earlier.
Oil chain remained under selling pressure with the exception of PSO that showed considerable gains. Banking stocks outperformed while steel faltered.
Cement sector led the volume with 26.3m shares. Selling was witnessed in DG Khan Cement which was down 3.1pc, Pioneer Cement 4.8pc, Maple Leaf 5.9pc and Lucky Cement 1.8pc.
Published in Dawn, September 21st, 2019
