It was recently reported that last week the stock market saw one of the worst sessions since 2009. However, it is highly unlikely that the situation will improve until the ongoing political crisis ends. Investors are losing their interest in trading due to which volume dropped to three-year low at only 75 million shares on Monday.
Subsequently, the benchmark KSE-100 index moved narrowly between red and green during the past week. However, yesterday it closed with gains of 185.77 points at 44,523.21 on late buying.
Analysts at Elixir Securities said that the trading remained range bound as traders were watching the proceedings of Supreme Court. Furthermore, lack of flows from local and foreign institutional investors have kept the prices of stocks down. Political uncertainty clouded investors’ judgment and no one was willing to take risk.
Moreover, analyst at Topline Securities, Adnan Sami Sheikh, said that the trading volume thinned to the lowest since August 22, 2014, when opposition first demanded the PM’s resignation amid alleged election rigging.
Yesterday, traded volume dropped to 33% to 3-year low at 75.3 million shares while the traded value contracted 30% over the previous session to PKR 4.2 billion. Third- and second-tier stocks were on the volume leaders list with KEL taking the top spot with dealings in 7 million shares, followed by Engro Polymer showing 6 million shares changing hands.
Top contributors to the index were BAHL which gained 4.3%, HUBC 1.8%, Lucky 1.5%, UBL 1.3% and OGDC 1.4%. While HBL declined by 0.7%, PPL 1.1%, JLICL 4%, PMPK 4.3% and Engro 0.3% taking away 62 points.