Stocks turn red as support fund euphoria fizzles
KARACHI: Bulls were driven away only after a day of rampage on the stock market, where the KSE-100 index again resumed its journey south, losing 66.43 points (0.16 per cent) to close at 40,724.96 points on Tuesday.
The rally extended into the second day and the KSE-100 index initially climbed intraday high by 562 points. But market bears regrouped to stage a comeback. As the investors’ euphoria over the proposed Rs20bn market support fund died down, they decided to liquidate positions which saw the index succumb to intense selling pressure losing all of the day’s initial gains and close in the red.
The only noticeable feature was the net buying of $3.52m worth stocks by the mutual funds. A fund manager asserted that it dispels rumours of heavy redemption orders.
The upbeat sentiment witnessed on Monday led to higher market participation on Tuesday as the volume rose 34pc over the earlier day to 167m shares while the traded value jumped 61pc to Rs9.72bn.
“Domestic sentiments remain influenced by ongoing political turmoil,” stated Intermarket Securities.