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Moody’s rating change pushes KSE 100-share index up by 62 points


The Karachi stock market witnessed a bullish trading session Tuesday as Moody’s investor service revised the ratings of NBP, HBL, UBL, MCB and Pakistan’s sovereign debt to stable, which boosted investor confidence and they went for buying activities.

The Karachi Stock Exchange (KSE) 100-share index gained 62.55 points or 0.79 percent to close at 7,995.10 points as compared to the previous session’s 7,932.55 points. The KSE 30-share index closed at 8,474.25 points with an increase of 65.32 points. The KMI 30 index closed at 11,873.31 points with a surge of 63.07 points.

Analysts said the market remained buoyant since the start of the trading activities the trend continued till the closing. Cement and bank stocks remained in the limelight during the session.

The market turnover went down by 22.55 percent and traded 106.86 million shares as compared with previous session’s 137.99 million shares. The overall market capitalisation was up by 0.68 percent to close at Rs 2.354 trillion as against Rs 2.338 trillion. Out of total 385 companies, 166 closed in the positive zone, 193 in negative while 26 remained unchanged.

“With limited events in sight and smooth phasing out of the result season the market performed in a narrow range,” said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. “The index did manage a triple digit gain, that was generally attained by gains in MCB and OGDC as whispers suggested foreign buying in both the index heavy weights, but the gains failed to inspire an across-the-board activity as reflected by the low turnover.”

Offloading by the local investors disallowed the 100-share index to sustain triple digit gains. Dips in the main board stocks mainly those yet to announce June end results and those (few in number), which outperformed market expectations, invited cautious accumulation by the local investors who opted for squaring up their positions, he added.

Stocks trading at higher multiples have faced local selling that is being absorbed by foreign participants (due to unknown reasons) disallowing any major impact on 100-share index, he said and added that while tug of war continued in leading cement stocks due to CCP phobia and unconfirmed news of decline in local cement rates, dips however continued to invite renewed buying interest.

“Rise in local furnace oil prices and foreign buying played a key role in rejuvenating spirits of the investors,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. The KSE 100-share index opened in green zone with a gain of 15.49 points and at the end of the day closed at 7,995.10 points with a gain of 62.55 points.

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