Some of the banking, cement and telecom sectors received selling pressure which trimmed the KSE-100 index by smaller margin where volume was on the lower side. The index opened on a positive note with thin volumes in all major stocks that assisted the market to 9517 up 12 points.
Bourse's initial run via OGDC, PSO, PTC, MCB, BoP, DG Khan Cement, Luck Cement, PPL, POL and NML was unsustainable. The market turned south amid low volumes, and lower levels saw contestants interest due to which the market showed a subdued upward movement, but met resistance whereby the bourse traded in both columns.
Slight volumes at lower stages brought jobbers and punters back into the ring that dashed Benchmark-100 north to the high of 9526 up 21 points. However, higher levels witnessed pressure in the market which skewed down along with all core stocks of KSE-100, even though NBP showed an amazing rally to make a high of Rs 200.25, but remained unable to spark a charm among investors and the market closed down 32 points at 9472.
After the privatisation of the PTCL, many wonder what lies ahead since all positive news and views reflect in the price of all blue chip stocks, now it seems participants seek better options to enter the ring, given that Kalabagh dam can create complex problems that may affect KSE-100, and it looks as if the bourse may test 9270-9300, therefore, caution is advised at every stage of the market with profit and stop loss margin in mind.
PTCL lost Rs 0.7 as investors took the news that Etisalat would make the payment of PTCL in five years negatively. The PTCL also wiped out 11 points from the KSE-100 followed by MCB and NBP that also reduced 6 and 4 points, respectively.
The banking sector also saw profit-taking as NBP, MCB and BoP fell by Rs 1.3, Rs 2.7 and Rs 1.75, respectively. Moreover, both the Suis ended in negative territory by the end of the day. On the other hand, major cement sector scrips coupled with Engro and FFBL gained over Wednesday's closing.
Some 408 companies were traded out of which, 195 companies closed above their previous level and 164 closed down while 49 scrips remained unchanged.
Hasnain Asghar from Aziz Fidahuesin said the absence of market driving news and fast approaching year-end continues to force a recommend of caution with profit-taking advised in the stocks running at highest level of the current rally.
Upcoming announcements would allow the market to invite buyers on strength internal issues of the local bourses coupled with financing issues might not allow the current rally to join strings.
Technically, the index, however, would continue to find support around 9333-9337, while overhead resistance stays at 9490-9497. Small adjustment and ability of the index to invite turnover on dips should be seen for taking fresh trading positions while short-covering led surge in the second session on Friday can be looked for profit-taking as certain stocks are tilted towards short region.
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