KARACHI: Senate outcome sent some shivering signals to investors where selling spree hit the deck wiping about 2 percent of 100 index where dozens of companies shares finished at low marks, dealers said.
The KSE-100 index marked a bloodbath session today after the senate election results, where against odds the opposition party emerged victorious on the key senate seats. “Investors also feared over covid-19 third wave that caused 75 deaths yesterday (highest in 3 months) along with rise in PIB yields (20-40bps) in the auction held last day” said Zaid Aftab research analyst at Pearl Securities.
There was no such positive news on both local and int’l front that could lend support to the bourses. As a result, the market made intra-day low 45,088 (-1,073) to close at the levels of 45,279 (-882 pts). Going forward, “we expect the market to remain bearish until the PM gets a vote of confidence from Parliament on Saturday” he said therefore, we reiterate our stance and suggest our investors to go for the “Sell on Strength” strategy in the coming days.
A.A Soomro managing director KASB Securities said that stock market bled hard losing 800 points and trading Rs 21 billion of shares. The upset over the loss of Finance Minister s Senate election has jolted the political stability.
The ruling coalition has bagged lesser than expected seats. More importantly, opposition parties cite it as a win. Fearing the low morale, Prime Minister has called for a vote of confidence vote on Saturday to address the uncertainty once and for all. Some opposition members have remarked that they don t want early elections either.
PTI has nominated Sadiq Sanjrani (ex Chairman) for the post for Chairman once again to reduce risks of further upset.
Stock market started near floor levels only to recover mildly but to crash hard again by the end. Almost all of blue chips or growth stocks closed 3-4% negative today as fears crammed in. However, we feel Prime Minister might be able to successfully win vote of confidence and Sadiq Sanjrani could garner enough support for Chairman’s slot.
We expect tomorrow to be flattish to red although as inertia of selling lingers on. Monday should start on a good note, said Soomro.
“Investors sold in Panic ahead of official senate election results along with the uncertainty over the confidence vote for PM in National Assembly on Saturday”, said Muhammad Saeed Khalid, head of research at Shajar Capital.
The unofficial result of senate elections has kept the KSE100 index into lackluster activity where the benchmark index crashed earlier during the day today by 1,074 points. Further, rising COVID19 cases in PSL players along with the uncertainty over the economic activity in the country has also pushed down the volumetric activity in the KSEALL share index, Saeed Khalid said.