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Bulls return to Karachi stocks as index surges 85.14 points


Bulls staged a comeback at the Karachi stock market Tuesday on back of announcement of 10 million pounds counter terrorism package by UK and statements on nuclear safety by President Asif Zardari.

The Karachi Stock Exchange (KSE) 100-share index gained 85.14 points or 1.16 percent to close at 7,430.08 points as compared to 7,344.94 points of the previous session. The KSE 30-share index increased by 51.07 points and closed at 7,987.72 points as compared with 7,936.02 points. The KMI 30 index also surged 129.29 points to close at 10,519.54 points as against 10,390.25 points.

Analysts said that the market, despite opening on a negative note, closed positively in the wake of better than expected results during the current week.

The market turnover went up by 32.29 percent and traded 181.90 million shares as compared to previous session’s 137.50 million shares. The overall market capitalisation increased by 1.04 percent to close at Rs 2.213 trillion as against Rs 2.191 trillion traded in the previous session. Out of total 334 companies, 136 closed in positive zone, 179 in negative, while 19 remained unchanged.

Analysts said blue chips invited accumulation at bottom levels as the local investors expressed their confidence in the government’s capacity to tackle the on going security issues, thus rejecting the views that certain activities taking place on the political front have led to the recent decline although positive numbers during intra-day trade initially led to dull activity.

Accumulation by the corporate participants invited the sideliners, and the positive momentum soon spilled to across-the-board bull-run. Analysts predicted that attractive valuations would continue to invite support at certain discounts and absence of trigger and leverage will invite level of saturation.

Brokers said that investors took positions in blue chips on expectations of good result announcements this week. Furthermore, better than expected result announcement by Engro Chemical, rise in E&P sector’s earnings and rebound in international equity markets played a catalyst role for market’s recovery.

The KSE 100 index opened in the red zone with a loss of 85.82 points and at the end of the day closed at 7430.08 points with a gain of 85.14 points. NBP was the volume leader in the share market with 16.60 million shares as it closed at Rs 76.29 after opening at Rs 72.66 making a financial gain of Rs 3.63. Fauji Fertiliser Bin traded 12.33 million shares as it closed at Rs 17.81 from its opening at Rs 16.81 gaining Re 1.

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