Stocks drift lower on liquidity concerns
KARACHI: Stocks retreated on Tuesday with the KSE-100 index declining 197.72 points, or 0.40 per cent, to close at 49,767.91.
Some market participants believes the index was in a phase of consolidation before making another attempt to take a decisive leap over the 50,000-ponit level, which has become a firm resistance.
Others thought stocks drifted lower on mounting concerns over the liquidity crunch following the SECP’s crackdown on in-house financing.
“Further reduction in the number of margin eligible securities acceptable as collateral from Wednesday has also pushed leveraged investors to trim their positions,” said a trader.
Volumes declined 2.4pc to 353 million shares while the trading value fell 8.5pc to Rs17.2 billion. About 34 stocks closed on their upper circuits while 16 scrips closed on their lower limits.
Analyst Nabeel Haroon at JS Global said the market opened on a sombre note following the terrorist incident in Lahore. During the later hours, selling pressure was witnessed by weak and cautious holders.