Unlike local research house earlier expectations, the 100 Index failed to find any support in today’s session and traded sharply lower amid shrinking market participation as concerns on upcoming budgetary measures (implementation of stringent austerity measures aimed at improving fiscal management and revenue mobilization) kept the market in Risk Off mode. Participation scaled back on d/d basis (vol: – 19% and val: -27%) as valuations fail to galvanize market participants amid concerns on market’s future performance. Additional pressure on the market came from falling PKR in the interbank (+1.6% to 150.50) as PRI (Pakistan Remittance Initiative) flows start drying up post Ramadan. Moreover, the euphoria linked to launch of Market Support Fund failed to muster enough courage among market participants in today’s session. Major drag to 100 Index performance in today’s session is attributable to losses in ENGRO (-3.41%), HBL (-3.05%), PPL (-3.23%), OGDC (-3.23%) and LUCK (-4.75%).

Market participation for the 100 Index decreased to 74.89mn shares from 92.62mn in the previous session (-19.15% on d/d basis). Major contribution to total market volume came from KEL (+4.4%), BOP (-5.45%) and UNITY (-8.30%) churning 30.17mn shares out of the All Share volume of 91.74mn shares. Daily traded value for the 100 Index decreased to USD 21.19mn from USD 29.92mn in the previous session (-26.79% on d/d basis); UBL (USD 2.74mn), OGDC (USD 2.54mn) and LUCK (USD 2.28mn) were among top contributors from traded value perspective. The KSE100 is 22% below its 52-week high from June 7, 2018 and 6.85% above its 52-week low from May 20, 2019.

Technically speaking, the 100 Index extended its losses for the 2nd straight session amid thin participation and closed below trend line support and 20EMA. Today’s move below 34,900 can force the 100 Index to revisit its 52-wk low (32,352).