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Blue chips keep KSE on upbeat note as index gains 43.29 points

KARACHI: Active participation of investors in banks, oil and fertiliser scrips and NIT State Enterprise Fund helped the Karachi stock market to maintain the bullish trend on Thursday.

The Karachi Stock Exchange (KSE) 100-share index gained 43.29 points to close at 5,183.22 points as compared to 5,139.93 points traded in the previous session. The KSE 30 index also increased by 89.17 points and closed at 4,961.95 points as compared with 4,872.78 points of the previous session. The KMI 30 index also went up 35.13 points and closed at 6,894.75 points as against 6,859.62 points of the previous session.

The market turnover rose 42.17 percent and traded 143.88 million shares as compared to 248.80 million shares traded in the previous session. The overall market capitalisation added 0.48 percent to close at Rs 1.645 trillion as compared with Rs 1.637 trillion traded in the previous session. Out of 288 companies, 97 closed in the positive zone, 185 in negative while six remained unchanged. Analysts said availability of financiers in CFS allowed the index to restrict the adjustment to 100 points, sighting the ability of the index to find support on dips invited renewed buying interest; with main banking stocks continuing the upper lock momentum for the third consecutive session, it was easier for the index to stage a quick rebound.

Although low volumes depict absence of retailers, high net worth individuals and prominent business groups, the selective corporate sector participants however stayed main accumulators in the market.

The whispers of likely adjustment in the interest rates in upcoming quarters and status quo in the upcoming monetary policy did spread a wave of optimism in the arena, thereby allowing the index to stay in a consolidation phase. Cautious accumulators will keep coming on dips, in the main board dividend yielding stocks, with turnover being on lower side, as it will take some time before the market men enter the arena with confidence. No doubt, the eroded values still offer enough temptation nervousness on various fronts and recent debacle at the local bourses has kept the nervousness on the higher side. Analysts said buying activity was witnessed as distressed selling continued to be absorbed by opportunity buyers while recovery in international equity markets and expected reduction in discount rate in 2009 played as major catalysts for market support.

Analysts said the market opened on a positive note and during the rest of the trading session the 100-share index remained buoyant. The KSE 100 index opened in the green zone with a gain of 18.10 points and at the end of the day closed at 5,183.22 points with a gain of 43.29 points.

OGDC was the volume leader in the share market with 15.93 million shares as it closed at Rs 44.10 after opening at Rs 43.63 making a financial gain of 47 paisas. NIB Bank traded 10.39 million shares as it closed at Rs 5.32 after opening at Rs 5.52 shedding 20 paisas. (DT)

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