KARACHI JAN 15 (DNA) – The Pakistan Stock Exchange (PSX) on Wednesday appears to remain in search of direction for the third day in the absence of positive triggers for continuing its overall bullish journey. The stock market’s benchmark KSE-100 Share Index dropped 176.78 points or 0.41 percent and hit 43,030.26 points at 9.44 am. So far, the intraday high of 43,239.88 points has been observed after which negative sentiments have been prevailing. Short-term investors have been booking profits while reducing their intraday positions.

The Index today opened at 43,212.59 points, whereas yesterday it closed on a flattish note, and settled at 43,207.04 after losing 11.63 points (0.03 per cent).

Yesterday, traders opined that after a major run-up since August last year, the index was consolidating at the current levels before moving forward. “Early trade has been witnessing much of the volatility and the index has been fluctuating from negatives to positives and vice-versa.”

“Investors often have been disinterested in much of the latter day trading when speculators are busy churning mainly low-priced stocks.”

A total of 151,124,910 shares were traded Tuesday compared to the trade 199,044,740 shares during Monday, whereas the value of shares traded during the day stood at Rs 6.48 billion as compared to Monday’s Rs 9.15 billion.

The previous week witnessed massive overall spike in the stocks as local and foreign investors rampaged across the market to quickly hit upper circuits after the war clouds hanging over the region due to US-Iran hostilities dissipated which provided the investors the much-needed comfort to move funds from gold and money market back to risky assets that may provide higher returns.

There was no major negative news flow that could thwart the market exuberance. On the political front, the belligerent atmosphere in the country took a pause after some reconciliation between the government and the opposition following the consensus passage of Army, Air Force and Navy Amendment Bills.

Earlier, investors’ optimism continued as they saw the market back in the green after two earlier dismal years of negative returns.

From Aug 16, 2019 when the benchmark index had hit the pit at 28,765 points, the market has witnessed a spectacular rally that has carried it up by more than 50 pc in fewer than five months.

Improvement on the external front together with stability in the Pakistani Rupee was expected to reassure foreign investors.

Meanwhile, inflationary readings are set to touch peak in January 2020 (this month) with an imminent interest rate cut to follow, domestic investors remain jubilant as well, he said.