At the start of this week, country’s large stock exchange is observing monotonous business activity. It seems that the current political chaos has hampered the investors to conduct any activity as if they are playing a waiting game, when all circumstances will turn into their favor. Well it’s just like being at the risk of a volley of eggs to the investor’s forehead, quite idealistic condition. Stock market is not a place to idealize frankly speaking it’s a place to speculate to know the undercurrents and bear the risk.
Well, what we have analyzed in the last two days
open market rates and volume was insignificant and shareholders hang out on the side-lines to seize upon any chance for selling. It endures, because the local investors do not follow business directions, they only wait for a trigger that can lead them to do some business activity. As the investors is getting use to of political strife that helps to resolve the conflicts what they are directed to do in certain conditions.
Why investors play waiting game:
The KSE standard 100-share index drop 0.55% or 89.76 points to end at the 17,872.15 point level. Trade volume remains insignificant, closed at 150 million shares comparing it with Monday’s closing of 154 million shares.
Samar Iqbal, head of equity sales at Topline Securities remarked over this issue
“In absence of any triggers, investors preferred to stay on the sidelines as volumes remained low,”Decline in the index-heavyweights, Oil and Gas Development Company (OGDC) and MCB Bank, took their toll on the index, while investor interest seemed to shift towards dividend yielding stocks,” he further added.
Moreover for investors the making of caretaking government is very important and the upcoming days will define the business lineup and it will help in stabilizing the
foreign exchange rates in Pakistan.
Boost in power and fertilizer sector:
Fertilizer and oil stocks Like Hub Power Company boost to the top.it sems that mars and Venus are eventually collided, huge profit-taking comes into the share of Engro Corporation OGDC and Pakistan Oilfields. Telecom sectors maintain its reputation while the rumor of lower international incoming calls rates is in the air.
Total companies who participate trading are 327 on Tuesday. On the close of the market the shares of 112 companies are traded on higher rate and the share of 173 companies experience decline in their value. The total value of shares did business was Rs. 3.83 billion.
Hub Power company was in spotlight managed to close its business in black in terms of dividend-yielding stock. This all is done due to the exclusive
business news announced by HUBCO that the 84 mrgawat New Bong Hydropower Project owned by Hubco’s 75% held subsidiary Laraib Energy, will start working two months before it schedule. This news is enough to grab the interest of the investors, and it has a very positive impact on the parent company’s income statements. Another source of earning has opened for HUBCO through this project.
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