KARACHI (PPI): The Pakistan Stock Exchange started the day in the red on Wednesday, falling some 800 points in the initial hour of trading, the downfall eventually arrested later in the day.
Market took a U-turn and closed the day at 47,603 points after adding 729 points. Relative to its day-low, the KS-100 gained 1,600 points, the longest stretch in day.
At the start, many were expecting a knee-jerk reaction due to the Panama case development. Some even positioned to take advantage of low share prices expected after the drop. Market was due for a correction for some time now, and the fall from its 27th January-high of 50,887 to today’s low of 46,048 is almost 10% correction.
Sohai Farooq, a broker at Munir Khanani Securities, thinks Panama decision would be a short-term phenomenon, and the market will ride on going forward.
Zeeshan Afzal of Insight Securities, however, understands going north without a financing facility would be a tough task. Panama case fears have kept investors cautious; once this matter is settled, it would bring clarity to the market. According to Afzal, though market offers healthy returns and market inclusion in MSCI would trigger a rally, a financing product is also needed.
On asking a small investor about the impact of Panama decision, scheduled for tomorrow, he said it would be positive for the country and the market.