Intraday Bell: Clouds of pessimism refuse to shed away

July 19, 2019 (MLN): Clouds of pessimism continue to float upon equity markets as the KSE 100 index has lost another 239 points by the end of first session, and is trading at 32,069 points as of now. The last time benchmark index went this low was back in March 3, 2016.

The outflow of capital from the stock market persists as more and more investors are switching from equity instruments to safe havens such as Dollar and Gold, a research note by BIPL Securities points out. Moreover, it seems that the after-effects of monetary tightening hasn’t died down as yet.

Commercial Banks, Power Generation, E&P and Fertilizer sector seem to be the major driving forces behind this deterioration, as they have collectively taken away around 153 points from the index.

The scrips of HUBC (-2.12%), DAWH (-2.57%), UBL (-1.24%) and NESTLE (-5.00%) have lost the most points hitherto.

Up till now, the index has traded within a range of 418 points, and touched an intraday low of 31,901 points.

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