In the light of recent market appreciation over the last couple of days, investors preferred to book short term gains. The volumes continued to remain thin while top 16-stocks generated 74% of the total volumes. Low cap stocks were in the limelight including KESC, JSCL, LOTPTA and ANL. The political uncertainty along with economic concerns kept investors in dubious mood. The external risk can be considered as a major threat whereas weak governance and administration continue to dent economic stability and prosperity. The Prime Minister was disqualified by Supreme Court and the announcement of the Judgment came few minutes after the closure of the market. Ruling political party finally acknowledged the decision and is expected to replace the Prime Minister. More importantly with the decision of the Supreme Court, all the regulation passed after April 26, 2012 might have to be revalidated by the newly appointed premier. We believe in such a scenario market reaction could turn negative.
No comments:
Post a Comment