Kse resumes bearish view after short-lived recovery

LAHORE - Bearish sentiments got intensified once again on Wednesday and bulls were thrown out of the ring. The market, after fluctuating across the dividing line, took downhill course and finally reached the 12,231.67 points low.

Around closing the KSE 100-index made some recovery and closed at 12,254.97 levels, after massive loss of 567.28 points.

Analysts said that market after short-lived recovery resumed downward trend once again against the expectations and technical correction failed to extend itself and ended halfway. Though market resumed downward trend with thin volumes but undertone was shaky.

Trading activity was witnessed in 359 scrips and out of these 57 closed with plus and 293 with minus signs while 9 scrips kept last closings. Volumes were again drastically down and only 187.807 million shares were traded.

NIB bank took top position in volumes with traded volumes of 10.021 million shares and closed limit down after loosing rupee one. All top thirty volumes leaders closed in minus column.

Dealers said market witnessed huge selling pressure after midday and the primary reason behind this was the pressure created because of the rollover week and rumour about certain members' margin calls.

Other news, which pressurized the market, was uncertainty over imposition of CGT and reduction in OMC margin.

Tariq Khurshid, Executive Director, First Pakistan Securities said that 'margin calls to brokers' intensified bearish sentiments.

"Market internal problems are going to play pivotal role in determining its direction for remaining two days of this week which is also rollover week. Smooth settlement of this week and future contract will help the market stage strong recovery next week," he observed.  

Another expert from Live Securities maintained, "Forced selling was witnessed due to this reason which was later converted into panic selling by the market. Further investors are opting to remain on the sidelines as government is not taking confidence-building measures to calm their nerves." Earlier, the market in conformity to last day technical correction opened 41.10 points plus at 12863.35 points but failed to make further advance. It came down and gave a short visit to red territory and came back in green. This time it went to 12925.59 points to establish day high. Soon after hitting high market came back in minus column and after fluctuating across dividing line finally took downhill course. Free float index opened in plus column but lost plus sign after opening. It tried many time to resume recovery and in one such attempt went up to 15315.94 points but each time it failed to hold ground. After hitting high it came down in minus column and moving down lost 15000 points support level once again. Declining trend continued and market after breaching previous low went down to 14389.90 points low. It closed marginally above its low at 14395.11 points minus 749.35 points. All shares index lost 394.82 points and closed at 8785.41 points. The LSE-25, before closing bell, staged modest recovery and closed 200.02 points minus at 3857.76 points. Out of 108 traded scrips only 4 scrips were able to manage plus closing against 67 minus closings while 37 scrips kept previous closings. Volumes tumbled down once again and 16.510 million shares turnover was registered today. Here too NIB bank bagged top position in volumes with traded volumes of 3.915 million shares and closed limit down. All the top ten volumes leaders closed in minus column. All most all the blue chips closed limit down.