The KSE-100 Index opened on a positive note but later on it dropped drastically as mounting selling pressure depressed the market sentiment. The Index closed at 8235, shedding 81.55 points, by the end of the day. Trading volumes remained thin at 203 million shares, showing 29 percent decline compared with last session.
Tariq Hussain Khan, research analyst at Live Securities, said that at one point of time the market touched its intra-day high at 8356.14 level but failed to restore investors' confidence as all players shied away to acquire fresh positions, resulting in a steep decline towards the end of the day.
PTCL was the major cause of decline, resulting from rumour about delaying cash dividend by the board of directors in the upcoming quarterly results. Consequently, other volume leaders also closed below their last levels. OGDC and FFC were the scrips that attempted to create some buying mood but were unable to provide a reasonable support.
Losers outnumbered gainers as 165 companies were down whereby 75 companies managed to close above previous levels.
Abbas Raza, research analyst from First Capital Equities, said that by habit or usual ritual, KSE-100 belled in 39 points north with buying in the index-based shares that zipped the market to 8356.
The upward opening of the market, like in many other sessions, provided benchmark100 participants with an opportunity to sell the market with the aid of OGDC, PSO, PPL, MCB, NBP, LUCK, BOP, POL, PTCL and DGKC, which plunged the bourse headlong to the intra-day low of 8109 down 208 points.
Lower levels brought the contestants back into the ring who, through OGDC, FFC, PGF, PSO and SHELL, recovered the market to close 82 points in the negative at 8235. KSE-100's commencement on strength and soon followed by selling seemed like an exit strategy, where by 'Smart Money' creates an aura of an uptrend which then is immediately followed by a severe selling pressure, giving rise to handsomely high volatility. Thus the blue-eyed stocks, like NBP, LUCK, BOP, DGKC and NML were all lined on their lower locks but ended up before closing, while PTCL nearly kissed its lower circuit of Rs 59.95 prior to closing at Rs 60.80.
Sharp decline at KSE-100 did not only create room for an imminent pullback but also made many blue chip shares very attractive. So, tread the market selectively, with caution, along with profit and stop loss margin in mind, not forgetting keeping an eye on excessive wavering which will accompany it.