KARACHI: The Karachi stock market continued to witness a bullish trading session on the last day of the trading week Friday as aggressive buying by NIT State Enterprise Fund boosted investors’ confidence and they took fresh positions in oil, banks and insurance scrips.
The Karachi Stock Exchange (KSE) 100-share index gained 63.19 points to close at 5,597.44 points as compared to 5,534.25 points traded in the previous session. The KSE 30 index also increased by 140.74 points and closed at 5,634.78 points as compared with 5,494.04 points of the previous session. The KMI 30 index was up by 77.25 points to close at 7,400.87 points as against 7,323.62 points of the previous session.
The market turnover decreased by 10.61 percent and traded 183.74 million shares as compared to previous session’s 205.56 million shares. However, the overall market capitalisation increased by 1.03 percent and closed at Rs 1.764 trillion as compared with Rs 1.746 trillion traded in the previous session. Out of 271 companies, 123 closed in the positive zone, 138 in negative while 10 remained unchanged. Analysts said gains were seen during the wee hours of trade as the level of 5,700 points was well targeted by the initiators of the rally and some corporate participants. The increase in the share prices of the main board stocks triggered the market participants to go for profit-taking and heavy off-loading took place for a while.
Support by the corporate and the high net worth individuals in selected stocks of oil and gas exploration and banking sector allowed the index to stage a recovery after making a short visit to the negative territory. Affirmative by the chairperson of NA committee on finance during her visit to KSE on forwarding the proposals made by the BoD of KSE regarding CVT and tax on dividend can be a triggering factor for the local bourses, provided the proposals become part of the upcoming budget.
Other events that can allow the rally to continue are the ability of the large cap companies to come up with healthy cash payouts (in line with the optimistic expectations) in the upcoming corporate announcements and unveiling of an aggressive and investor-friendly petroleum policy on micro level. Positive outcome from the visit of the finance authorities to Japan and the meeting of friends of Pakistan on macro front, can allow the index to continue invite support on dips. Introduction of speculator friendly leverage tool may allow the change of hands on strength as the retailers and the market participants, acquainted with leveraging, are likely to celebrate above mentioned events well before materialisation, thereby allowing the rally to continue, minor breathers will however keep coming.
Analysts further said that investors remained optimistic regarding upcoming results of banks, oil and insurance scrips scheduled to be announced next week. The KSE 100 index opened in the green zone with a gain of 5.53 points and at the end of the day closed at 5,597.44 points with a gain of 63.19 points. OGDC was the volume leader in the share market with 18.37 million shares as it closed at Rs 50.00 after opening at Rs 47.78 making a financial gain of Rs 2.22. PTCL traded 10.80 million shares as it closed at Rs 15.04 after opening at Rs 15.46 shedding 42 paisas.
The Karachi Stock Exchange (KSE) 100-share index gained 63.19 points to close at 5,597.44 points as compared to 5,534.25 points traded in the previous session. The KSE 30 index also increased by 140.74 points and closed at 5,634.78 points as compared with 5,494.04 points of the previous session. The KMI 30 index was up by 77.25 points to close at 7,400.87 points as against 7,323.62 points of the previous session.
The market turnover decreased by 10.61 percent and traded 183.74 million shares as compared to previous session’s 205.56 million shares. However, the overall market capitalisation increased by 1.03 percent and closed at Rs 1.764 trillion as compared with Rs 1.746 trillion traded in the previous session. Out of 271 companies, 123 closed in the positive zone, 138 in negative while 10 remained unchanged. Analysts said gains were seen during the wee hours of trade as the level of 5,700 points was well targeted by the initiators of the rally and some corporate participants. The increase in the share prices of the main board stocks triggered the market participants to go for profit-taking and heavy off-loading took place for a while.
Support by the corporate and the high net worth individuals in selected stocks of oil and gas exploration and banking sector allowed the index to stage a recovery after making a short visit to the negative territory. Affirmative by the chairperson of NA committee on finance during her visit to KSE on forwarding the proposals made by the BoD of KSE regarding CVT and tax on dividend can be a triggering factor for the local bourses, provided the proposals become part of the upcoming budget.
Other events that can allow the rally to continue are the ability of the large cap companies to come up with healthy cash payouts (in line with the optimistic expectations) in the upcoming corporate announcements and unveiling of an aggressive and investor-friendly petroleum policy on micro level. Positive outcome from the visit of the finance authorities to Japan and the meeting of friends of Pakistan on macro front, can allow the index to continue invite support on dips. Introduction of speculator friendly leverage tool may allow the change of hands on strength as the retailers and the market participants, acquainted with leveraging, are likely to celebrate above mentioned events well before materialisation, thereby allowing the rally to continue, minor breathers will however keep coming.
Analysts further said that investors remained optimistic regarding upcoming results of banks, oil and insurance scrips scheduled to be announced next week. The KSE 100 index opened in the green zone with a gain of 5.53 points and at the end of the day closed at 5,597.44 points with a gain of 63.19 points. OGDC was the volume leader in the share market with 18.37 million shares as it closed at Rs 50.00 after opening at Rs 47.78 making a financial gain of Rs 2.22. PTCL traded 10.80 million shares as it closed at Rs 15.04 after opening at Rs 15.46 shedding 42 paisas.
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