The share market on Thursday received showers of profit taking from punters, resulting in trimming of equities especially in the banking, cement and some of the oil companies where turnover improved by a small margin.
It was mostly a positive day where the market sentiment drove the index into the five-digit zone several times. But each time it ventured into that coveted selling zone it ended in a negative note. During the session the market reached the high of 10,038 points, but closed at a low at 9916 points, losing 20 points from its overnight level.
Hasnain Asghar from Aziz Fidahusein said that low volumes and profit taking never allowed the index to maintain the upward stance. Announcement of dividend by NIT and rising oil prices in the international market was expected to allow the bulls to dominate the proceedings, change of stance by the main players indicated by increase in turnover to continue on Friday. Technically the index needs to consolidate around 9770-9777 for recharging the psychological 10,000.
An analyst from WE financial services said that the selling pressure occurred because of the recent bearish trends which has made the average investor skeptical and they are beyond 10k which automatically gets into the selling mode. Probably the upcoming result season may trigger the recovery but implementation of UIN in the coming month may cause some panic or on second thought it may not.
Overall the volumes and the market movement in a narrow band can be inferred as a good sign as this indicates that the market is trying to consolidate, if it does than any upcoming positive trigger is likely to have a favourable impact.
Jawad Haleem, research analyst from Atlas Capital said that the reason for the decline could be attributed to uncertainty regarding the outcome of the former SECP chairman's appearance before the National Assembly on Friday.
A mixed session was observed whereby selling took place in the E&P, banking and gas sectors at large whereas the cement and telecom was predominantly sought after resulting in positive closes in their scrips.