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Relaxation of account treatment rules boosts KSE index


After four consecutive bearish sessions, the Karachi stock market regained its lost composure following relaxation by SECP regarding treatment for impairment of capital losses and its direct change to equity instead of profit and loss account, which boosted investors’ confidence, analysts said on Friday.

They said investors’ sentiment remained positive throughout the trading session, as improved profitability is expected after amendment made by SECP. The Karachi Stock Exchange (KSE) 100-share index gained 226.54 points or 4.20 percent to close at 5,625.90 points as compared to 5,399.36 points traded in the previous session. The KSE 30 index also increased by 283.26 points and closed at 5,681.89 points as compared with 5,398.63 points of the previous session. The KMI 30 index went up by 348.49 points to close at 7,512.11 points as against 7,163.62 points of the previous session.

The market turnover jumped 80.89 percent and traded 162.43 million shares as compared to previous session’s 89.79 million shares. The overall market capitalisation also gained 3.88 percent to close at Rs 1.766 trillion as compared with Rs 1.700 trillion traded in the previous session. Out of 267 companies, 203 closed in the positive zone, 43 in negative while 21 remained unchanged. Analysts said response to CCOP’s reservations regarding IAS, 39 by SECP and positive response by India and other international countries over blast investigations’ invited a fresh wave of confidence; local and corporate participants actively accumulated main board stocks, of almost all the sectors. Technical bounce-back after four bearish sessions found support of unconfirmed news during the session, regarding acceptance of amendments proposed by the financial institutions regarding routing of impairments, and the index managed to breach the psychological 5,500 points, quite comfortably.

Confirmation of the development did invite celebration, the main board stocks made it to the upper locks, as the relaxation forced the sellers to go on back foot, issues of liquidity, however, led to a bit of profit taking.

Brokers attributed the positive trend to reduction in foreign selling and discounted scrip prices, which changed investors’ sentiment allowing them to take positions in oversold scrips.

The KSE 100 index opened in the green zone with a gain of 15.30 points and at the end of the day closed at 5,625.90 points with a gain of 226.54 points. Bank Al-Falah was the volume leader in the share market with 21.48 million shares as it closed at Rs 13.15 after opening at Rs 12.21 making a financial gain of 94 paisas. NIB Bank traded 16.92 million shares as it closed at Rs 5.43 after opening at Rs 4.82 gaining 61 paisas. Jah Siddi Co traded 11.03 million shares as it closed at Rs 32.19 after opening at Rs 30.66 gaining Rs 1.53. OGDC traded 10.05 million shares as it closed at Rs 51.38 after opening at Rs 48.94 making a financial gain of Rs 2.44. PTCL traded 8.45 million shares as it closed at Rs 15.76 after opening at Rs 15.03 making a financial gain of 73 paisas. (DT)

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