Selling pressure drags market further down

LAHORE - The equity market on Tuesday continued to remain in grip of bears and selling pressure push the market further down with majority of the scrips closing on lower circuits.

The KSE 100 index, after recovering marginally, closed at 11,813.24 level, loosing 65.14 points. However, buying was witnessed in specific scrips where the values were seen. At the same time, overall volumes enhanced to 21.2m shares as compared to 16.9m shares traded previously.

Dealers said that overall sentiments were negative mainly due to the political turmoil and poor law and order.

For the last many days market is continuously suffering losses. Market sentiments are still negative. LSE board members are planning to meet SECP chairman in next two to three days. They will ask him to revise lower and upper circuit breakers limit. They will also put forwards the demand of making market support fund. Any such move will help the market to stage technical recovery.

Earlier, market once again opened with down wards gap of 43.61 points and that proved its day high. Market declined further after negative opening and touched 11797.17 points low in intra-day trading.

Free float index opened in minus column and continuing down wards journey reached 13627.17 points low. Before closing it recovered a little and closed 98.69 points minus at 13629.85 points. All shares index closed at 8525.82 points after shedding 39.09 points. Trading activity expended to 179 scrips and out of those 30 closed with plus and 145 with minus signs while 4 scrips kept previous closings. Improvement in volumes continued and turnover increased to 21.207 million shares in which FCCL contributed 5.120 million shares trade being top volumes leaders but closed limit down after loosing rupees 0.09. From top thirty volumes leaders 6 closed in plus and 19 in minus column.

At Lahore Stock Exchange market opened with down wards gap of 15.27 points and kept the gap in tact till closing. After negative opening in day long trading market in three steps of 3664, 3659, and 3655 points reached to its day low of 3655 points but closed fractionally above its low at 3655.18 points after shedding 26.49 points. From 81 traded scrips only one closed in plus column against 25 minus closing and 55 scrips remained at yesterday closing level. Here new record of low volumes was recorded which was just 0.192m shares. NIB bank took top position in volumes with just 55 thousand shares trade.  

Today money market Overnight Repo rates started at the levels of 10.50%-11.50%. Clean transactions were traded in between 13.00%-14.00% whereas in Call, most of the deals were done within the range of 11.00%-14.00%. Finally money market closed at around 11.90%. Moreover, market participants, towards the end of the session, availed SBP discount window amounting PKR700mn.