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The market started on a positive note as the investors thought that worst may be over after the stocks climbed in the previous sessions on Friday and Monday, defying the bear onslaught that had eroded nearly 4 per cent of the gains in the earlier week.
But by mid-day on Tuesday nervous investors thought it prudent to take profit and stay on the sidelines until the dust on the security front settled to provide a clear view of the government’s policy on the Taliban.
The equities thus succumbed to selling pressure. The offloading by foreign investors of $1.27m worth shares caused a bit of fear, though it could have been fallout of the equities decline in some major developed markets.
The trading value declined to Rs5.829 billion, from Rs8.04bn a day ago and almost all the turnover was concentrated in the second and third-tier scrips.
Bank of Punjab (right) lost further ground to close 33 paisa down to 53 paisa on 53 million shares, accounting for 23 per cent of aggregate volume at 227m shares.
Ahsan Mehanti at Arif Habib Corp commented that stocks closed bearish on Tuesday on institutional profit-taking across the board post major earnings announcements at KSE.
Economic uncertainty, gas supply issues for fertiliser units, dismal corporate sector payouts and concerns for rising circular debt in energy sector played a catalyst role in bearish activity at the KSE, analyst said.
At the close of trading session, investors’ anxiety was at a high pitch. Stock strategists and technical analysts suggested caution going forward.
Ahmed Hanif at KASB Securities read from his technical chart that the bearish momentum was intact despite oversold RSI. “The index dropped and remained negative most of the trading session.”