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Upcoming positive developments push Karachi stocks 57.20 pts up


The Karachi stock market maintained its bullish sentiment on Wednesday, as expectations of cut in discount rates within the next couple of weeks and the meeting of friends of Pakistan on April 17, which is expected to attract foreign funds to stabilise the economy, boosted investors’ confidence.

The Karachi Stock Exchange (KSE) 100-share index gained of 57.20 points or 0.86 percent to close at 6,674.82 points as compared to 6,617.00 points traded in the previous session. The KSE 30-share index also increased by 70.59 points and closed at 7,234.40 points as compared with 7,163.81 points of the previous session. The KMI 30 index surged by 27.52 points to close at 9,225.54 points as against 9,198.02 points of the previous session.

The market turnover decreased by 12.52 percent and traded 262.88 million shares as compared to 300.53 million shares traded in the previous session. The overall market capitalisation went up by 0.70 percent to close at Rs 2.005 trillion as compared with Rs 1.991 trillion traded in the previous session. Out of total 378 companies, 138 closed in the positive zone, 228 in negative, while 12 remained unchanged.

Analysts said formation of a committee to probe the March 2005 crisis and remarks on likely failure of agreement in northern areas had an impact on otherwise smooth sailing market as the benchmark did dare the resistance of 6,770 points to 6,777 points in wee hours of trade and the mentioned developments invited an across-the-board profit-taking.

Huge float offered through foreign selling of $7.1 million on Tuesday struggled to find ultimate buyers disallowing support even at adjusted green numbers. Minor negativity invited the new entrants from almost all the categories in front line stocks as short covering followed accumulation and the bench mark staged a strong recovery.

Thus ignoring the vague signals of uncertainty from various fronts, developments on economic front directed the activity and the index accompanied by decent turnover ensured a healthy closing. Although upcoming events ensure smooth sailing for the economy, the fragile political and alarming law and order situation is expected to restrict the upside. Brokers said support by state run funds, tranche of $840 million due from IMF to be received within a week and favourable petroleum policy helped the market to close in the green zone.

The KSE 100 index opened in the green zone with a gain of 72.47 points and at the end of the day closed at 6,674.20 points with a gain of 57.20 points. OGDC was the volume leader in the share market with 17.11 million shares as it closed at Rs 67.08 after opening at Rs 66.67 making a financial gain of 41 paisas. Bank Al- Falah traded 16.90 million shares as it closed at Rs 16.10 as against its opening at Rs 15.63 gaining 47 paisas.

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