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KSE gains 242 pts on $4bn raise in US aid to Pakistan


KARACHI: Bulls continued to dominate the trading session at the Karachi stock market on the last trading day of the week Friday due to support from continuation of intense buying activities on economic fundamentals and US Senate’s confirmation of $4 billion increase in aid to Pakistan.

The Karachi Stock Exchange (KSE) 100-share index surged 241.79 points or 3.36 percent to close at 7,432.88 points as compared to 7,191.09 points traded in the previous session. The KSE 30-share index gained 261 points and closed at 8,064.16 points as compared with 7,803.16 points of the previous session. The KMI 30 index also increased by 324.27 points to close at 10,519.84 points as against 10,195.57 points of the previous session.

The market turnover increased by 13.47 percent and traded 330.15 million shares as compared to previous session’s 290.94 million shares. The overall market capitalisation went up by 3.28 percent and closed at Rs 2.235 trillion as compared with Rs 2.164 trillion traded in the previous session. Out of total 351 companies, 280 closed in positive zone, 60 in negative while 11 remained unchanged. The rally took along main board stocks of almost all the sectors, with financial sector results likely to reflect substantial recovery staged by the local stock markets, investors took fresh positions in banking stocks and closed end mutual funds (available at decent discounts).

Positive sentiments resulted in sectors and stocks swapping, mainly by the corporate participants, on strength. The move, besides providing day traders with various trading opportunities, kept the turnover at par with previous sessions.

Rumour regarding enhancement in the limit prescribed for banks for investment in the market did the needful and the benchmark sky rocketed in the second session, although the rumour stayed unconfirmed, buying spree continued on its axis. Day-end offloading forced the benchmark to resist around the intra-day resistance region of 7,477 points to 7,483 points, closing above the support of 7,425 points to 7,433 points indicates an extension of the rally, as the next immediate resistance stays at 7,597 points to 7,610 points.

Increase in CFS numbers by more than 100 percent (since the initiation of the rally) despite likelihood of elimination of the product, indicates willingness of both financiers and financees to participate in the product. With decline in interbank rates, availability of low risk product will attract fresh financing. It is therefore need of the hour to reintroduce modified CFS MK-II, as below potential turnover is not only hurting the tax collection target but it seems that low value of traded shares is the major hurdle in getting local bourse back on ‘MSCI’ index. The KSE 100 index opened in the green zone with a gain of 90.07 points and at the end of the day closed at 7,432.88 points.

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