KARACHI
Equity market witnessed a volatile session on Wednesday to close at 31,086.51 levels down by 224 points or 0.7pc.
Recent foreign selling spree continued throughout the day further shattering investors’ confidence. The day’s volatile session, KSE-100 index failed to support the 200 DMA with lackluster volumes.
Cements failed to benefit from the recent discount rate cut while the textile sector remained under pressure as textile exports fell by 2.9pc MoM and 10.0pc YoY in Feb 2015. Discount rate cut dampened banking returns, evident by a run on most banking stocks through the day’s trade. A further fall in Brent oil saw its effect on the oil & gas sector as almost all oil & gas scripts ended negative, commented analyst Arhum Ghous.
The bearish trend continued as Pakistan stocks fell 0.7pc further to 3 months low at 31,087 points. In the last 7 trading sessions, the Index is now down 5.7pc while it is down 10.95pc from its recent peak seen on Feb 03, 2015.
Volumes also declined to a 6-month low as only 99m shares were traded worth of Rs.6.1b/$611m. Rollover of futures contract also impacted the overall sentiments. PAEL with one of the highest open interest in futures fell by 5pc. Engro with 4.4m shares (Rs1.2b) traded fell by 0.8pc due to news of institutional selling.
Investors are concerned on continuous selling by offshore investors. That is why no aggressive buying is coming at these levels despite the recent fall in interest rates, observed Samar Iqbal VP at Equity Sales Topline Securities.
Selling continued across the board as political uncertainty weighed on investor sentiments ignoring ADB upbeat growth projections at 4.2pc for Pakistan and improving sales data in oil, cement, auto and fertilizer sectors, market watchers said. Uncertainty over global commodities prices, foreign selling in emerging markets played a catalyst role in bearish activity at KSE, they added.
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