During the four day week some stocks rebounded slightly on Wednesday and Friday after two consecutive days of falls. This was caused mainly due to slight price increases of high market capitalization stocks such as SPEN, COMB, SLT and JKH. Forced selling has been continuing in line with the policy of the regulator Securities and Exchange Commission to recover credits while money has been locked up in recent IPOs. Some of the stocks are at absolute bargains but the vast majority of retail investors do not have money or margins to buy them. While well-endowed high net worth players are having the capacity to buy, they are patiently collecting what is dumped during forced selling of helpless retail client positions. This is evidenced by the slump in the market performance.
Foreign investors were on the buying side during the week creating a net in flow of Rs.165.47 Mn. Foreign sales for the week stood at Rs.547.35 Mn while foreign purchases were Rs.712.82 Mn
The turnover for the week was Rs.8.39 Bn with a 388.13 Mn shares changing hands. The average daily turnover stood at Rs.2.10 Bn.
The benchmark ASPI plunged 134.95 points WoW to close at 6777.03 points, while the MPI plunged 75.84 points Wow ending at 6311.13.
Although buying mood has returned perhaps with most sensing new opportunities even the market was far from recovery, true test would be if the bourse remains positive throughout this week.