Bay Pond USA, continued its selling streak of JKH shares at Thursday’s trading as well, with the Government administered EPF being among the buyers, at Rs. 300 a share, to prevent the bourse from falling, market sources told The Sunday Leader.
Government institutions have been intervening in the market from time to time to stop it from collapsing, they said. Overall market sentiment is weak, the sources said.
On Thursday some four million shares of JKH were sold in the market, at Rs. 300 a share, following the seven million shares sold the previous day, Wednesday. Friday was a Poya holiday for the market.
“The market is over-valued, foreigners may be exiting from the market to make profit,” they said. “However, a fortnight prior to the budget, due on November 22, we may see some rallying,” the sources said, after which the market may take a fresh positioning, based on the outcome of the budget.
Stockbrokers are also downsizing their exposures to beat the January 1 deadline, after which they cannot extend credit to the market. The first round of selling has ended, the second round may begin, they said. This sort of selling may amount to hundreds of millions of rupees, the sources added, further depressing the bourse.
Meanwhile the benchmark ASI on Thursday, gained by 21.77 points over Wednesday, to close the week at 6,685.99 points; while the more sensitive MPI gained by 42.34 points to close the week at 7,270.80 points; on a Rs. 3.3 billion turnover.
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