Declines extended for third consecutive session and the index witnessed a paltry fall of 8 points where turnover was again on the lower side indicating investors were still at bay. The KSE-100 index fell 8 points, or 0.14 percent, to 5552.50 as compared with 5560.50. The volume declined to 181 million shares as against 197 million shares of Wednesday.
Arjumand B. Habib from First Capital, said with activity remaining low as a result of weak-holders, going long shown by high levels of badla investment and with institutional activity at a low level.
With activity remaining low in the market and three-day scheduled for Friday, we expect the market to continue its erratic and range-bound movement where index is likely to end on a negative note, she said.
Humbal Haroon from Akbarally Cassim, said a dull and range-bound day was witnessed as the market volumes were just above 180 million shares, adding the correction was witnessed in PSO and Pakistan Oilfields after the prices of petroleum products remained unchanged.
The second tier stocks - Japan Power and Bosicor - came in for renewed interest as investors shifted their interest to these stocks.
The badla decreased by 640 million rupees. There was major badla decrease in PTCL by 5 percent and we recommend buy on a dip strategy.
There was badla reduction across the board as the badla borrowers sold their holdings on range-bound activity in the market. The badla rates fell further to near 9 percent.
Azhar Javaid from WE, said the index managed to stay above the 5550 level. The increased activity was witnessed in the power sector as Japan Power came into focus on the back of rumours of management change.
The Japan Power's share prices have risen to approximately 22 percent since November and it is expected that it would continue to attract investors' interest, however, the market has consolidated at current levels.
"We are of the opinion that the depressed volumes are indicating lack of institutional support during the day as small investors continued to offload their short-term positions in blue chips", said Tariq Hussain Khan, manager research at Live Securities in Karachi.
It seems the investors have adopted the cautious strategy, and remained sideline resulting in a narrow range despite having a positive start as the investors picked up second and third tier stocks. Going by the COT volumes, punters engaged in speculating sideboard items by taking advantage of positive climate towards the end of the day. It was quite notable that the market managed to close above 5550 level.
Hasnain Asghar from Aziz Fidahusein, said the downward trend in the international oil prices never allowed the expensive petroleum stocks to find support even at the adjusted levels.
The high of 5576 invited offloading from carry over holdings thereby leading to an extended adjustment.
Technically, the index would continue to find support around 5533-5537. Last trading session is likely to invite offloading in the opening session, while the address of the prime minister in the Top Companies Award ceremony on Friday evening might invite buying in the main stocks, it is, therefore, recommended to accumulate main stocks around support levels.
Japan Power rose 50 paisa to Rs 6.35 on a turnover of 21.817 million shares, Bosicor gained 40 paisa to Rs 20.10 on a trading of 16.204 million shares, DG Khan Cement shed 50 paisa to Rs 51.50 on a volume of 15.675 million shares, Nishat Mills declined by 40 paisa to Rs 53.50 on a trading of 14.016 million shares, and PTCL rose five paisa to Rs 40.30 on deals of 12.679 million shares.
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