Karachi, August 16, 2019 (PPI-OT): View from the desk
The nightmare for equities continued today, the first day after Eid holidays, as the KSE-100 index closed yet again in negative territory -664 points (down 2.3% from previous close) to close at 28,765 level. Aggressive selling was seen in the market by foreign institutions as global markets witnessed hefty losses, gripped by fears for the global economy only a day after enthusiasm over possible detente in an ongoing US-China trade war had given them a dizzying lift. Overall market volume leaders were PPL (-4.5%), MLCF (-2.5%) and ISL (+5%) exchanged 14mn shares throughout the day.
The Cement sector experienced aggressive selling making it close in the red region, where most scripts closed near to their respective lower circuits. LUCK (-5%), KOHC (-4.8%), CHCC (-3.0%) and MLCF (-2.5%) were among the major losers from the aforementioned sector. The E and P sector also followed the trend with most stocks ending in the red region, such as PPL (-4.5%), POL (-4.1%) and OGDC (-3.9%). Moving forward, we expect market to exhibit volatility in the coming sessions due to overall ambiguity in the political environment, particularly on the country’s eastern border.