Rising circular debt to restrict dividend capacity of power firms
KSE-100 Index continued to move downward with another drop of 220 points leading to close in red at 47,356 levels. The Oil prices continue to surge after American Petroleum Institute reported a draw of 1.8 million barrels this week. In addition, oil prices have gained about 9 per cent in two weeks as participants are focused on the likelihood of OPEC and non-OPEC extending the production cut deal. However, EIA crude oil inventories are due to be released later in the day on Thursday.
According to market analysts, the selling pressure on fertilizer stocks due to weak demand leading the overall, trading volumes dropped to 146.3 million shares compared with previous session’s tally of 185.5 million.
The TRG was the volume leader of the day with a trade volume of 10.98 million shares which also spoke of the market sentiments. The other two volume leaders of the day were including Azgard nine and the Bank of Punjab with trade volumes of 9.74 million and 6.57 million shares respectively.
Meanwhile, the rising circular debt which has increased to around Rs414 billion is likely to have an impact on energy based stocks at a time when the government trying to meet its deficit target for Financial Year 2017. The rally in oil prices however have pushed up the oil prices at one month high as the none OPEC members have also assured for an output cut for yet another six months.