Bullish sentiments were witnessed at the Karachi stock market on the last trading day of the week Friday on support from intense buying activities as State Bank of Pakistan hinted at discount rate cut in the next monetary policy review on August 15.
The Karachi Stock Exchange (KSE) 100-share index increased by 229.17 points or 3.06 percent to close at 7,720.93 points as compared to 7,491.76 points of the previous trading session. The KSE 30-share index closed at 8,195.93 points with a gain of 275.91 points. The KMI 30 index closed at 11,674.75 points with a surge of 353.64 points.
Analysts said that the KSE 100-share index made a massive gain despite opening negatively as investors took positions across-the-board on International Monetary Fund’s (IMF) positive remarks on consideration over $4 billion loan for Pakistan’s economic revival.
The market turnover went up by 40.92 percent and traded 140.36 million shares as compared to previous session’s 99.60 million shares. The overall market capitalisation was up by 2.93 percent to close at Rs 2.78 trillion as compared with Rs 2.213 trillion. Out of total 367 companies, 259 closed in the positive zone, 89 in negative, while 19 remained unchanged.
“Linked to IMF tranche, approval of extended aid facility and healthy remarks by SBP governor regarding high liquidity available with local banks and instructions of the authority to extend loans to private sectors, geared up seasoned players,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Short covering allowed the market to end the five-day long bearish spell.” Technical bounce back allowed the 100-share index to register triple digit gains, since the recovery was initiated with low turnover, mainly due to absence of ready board leverage sideliners preferred to continue with wait and see policy while the liquid participants staged price inflation as the suspense regarding interest rate cut and declining trend in dollar reserves along with weakening of local currency stayed points of concern, he added.
Confidence expressed by the finance minister regarding materialisation of funds committed at friends’ forum and inflow on account of ‘war on terror’ improved the confidence level of participants of the economy.
“Rise in international oil prices, record cement sale dispatches this month and favourable outlook on result in oil, banking and cement sectors pushed the market into the green zone,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.
The KSE 100-share index opened in the red zone with a loss of 24.42 points and at the end of the day closed at 7,720.93 points with a gain of 229.17 points.
Fauji Cement was the volume leader in the share market with 9.05 million shares as it closed at Rs 8.20 after opening at Rs 7.79 making a financial gain of 41 paisas. Jah Siddi and Co traded 7.02 million shares as it closed at Rs 23.60 from its opening at Rs 23.40 gaining 20 paisas. Arif Habib Sec traded 6.70 million shares as it closed at Rs 26.88 as against its opening at Rs 26.01 gaining 87 paisas. DGK Cement traded 5.04 million shares as it closed at Rs 34.62 as compared to its opening at Rs 35.90 shedding Rs 1.28. staff report
The Karachi Stock Exchange (KSE) 100-share index increased by 229.17 points or 3.06 percent to close at 7,720.93 points as compared to 7,491.76 points of the previous trading session. The KSE 30-share index closed at 8,195.93 points with a gain of 275.91 points. The KMI 30 index closed at 11,674.75 points with a surge of 353.64 points.
Analysts said that the KSE 100-share index made a massive gain despite opening negatively as investors took positions across-the-board on International Monetary Fund’s (IMF) positive remarks on consideration over $4 billion loan for Pakistan’s economic revival.
The market turnover went up by 40.92 percent and traded 140.36 million shares as compared to previous session’s 99.60 million shares. The overall market capitalisation was up by 2.93 percent to close at Rs 2.78 trillion as compared with Rs 2.213 trillion. Out of total 367 companies, 259 closed in the positive zone, 89 in negative, while 19 remained unchanged.
“Linked to IMF tranche, approval of extended aid facility and healthy remarks by SBP governor regarding high liquidity available with local banks and instructions of the authority to extend loans to private sectors, geared up seasoned players,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Short covering allowed the market to end the five-day long bearish spell.” Technical bounce back allowed the 100-share index to register triple digit gains, since the recovery was initiated with low turnover, mainly due to absence of ready board leverage sideliners preferred to continue with wait and see policy while the liquid participants staged price inflation as the suspense regarding interest rate cut and declining trend in dollar reserves along with weakening of local currency stayed points of concern, he added.
Confidence expressed by the finance minister regarding materialisation of funds committed at friends’ forum and inflow on account of ‘war on terror’ improved the confidence level of participants of the economy.
“Rise in international oil prices, record cement sale dispatches this month and favourable outlook on result in oil, banking and cement sectors pushed the market into the green zone,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.
The KSE 100-share index opened in the red zone with a loss of 24.42 points and at the end of the day closed at 7,720.93 points with a gain of 229.17 points.
Fauji Cement was the volume leader in the share market with 9.05 million shares as it closed at Rs 8.20 after opening at Rs 7.79 making a financial gain of 41 paisas. Jah Siddi and Co traded 7.02 million shares as it closed at Rs 23.60 from its opening at Rs 23.40 gaining 20 paisas. Arif Habib Sec traded 6.70 million shares as it closed at Rs 26.88 as against its opening at Rs 26.01 gaining 87 paisas. DGK Cement traded 5.04 million shares as it closed at Rs 34.62 as compared to its opening at Rs 35.90 shedding Rs 1.28. staff report
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