The share market was under pressure on Wednesday and the volume hit almost three-year low as investors and big players were hesitant to build fresh positions until the issue of badla financing is resolved.
The trading volume shrank to 36 million shares versus 65 million shares of Tuesday. The beginning was positive for a brief stint following which the index plunged into the red as investors adopted a cautious strategy. Not even the outstanding performance of the companies during this results' season seemed to be supporting the market.
A leading trader from Atlas Investment Bank said that interest had been eroded significantly, which was evident from the persistence of such low volumes. It was the first day that the volume had dipped below 40 million shares since the March crisis.
A dealer at Elixir Securities said that participants were more reluctant to participate to avoid further losses. Studies by economists and psychologists had found that investors were most influenced by recent events like market crash, political events, earnings etc, and ignored long-term investment and economic fundamentals.
"We think it's a good time for long-term investment, and genuine investors should start accumulating high dividend yield and fundamentally strong stocks. The market is expected to remain range-bound but any news relating to COT would add life to the dull market.
Hasnain Asghar from Aziz Fidahusein said that record lowest total turnover was established and another record was that none of the stocks was able to hit the mark of 10 million shares.
The market would continue to find immediate support around 7090-7103 while overhead resistance stays at 7210-7117.
PTCL declined by 45 paisa to Rs 61.15 on a volume of 5.8 million shares. OGDC slipped to Rs 101.55 from Rs 102.65 on trading of 4.8 million shares. NBP rose 30 paisa to Rs 99.65 on deals of 3.1 million shares; Bank of Punjab declined 10 paisa to Rs 82.10 on business of 2.3 million shares; and MCB gained 40 paisa to Rs 87.40 on turnover of 2.3 million shares.
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