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Pak achievement of IMF targets pushes KSE 259.19 points up


KARACHI: Positive rally continued unabatedly at the Karachi stock market on Thursday due to support from intense buying activities as Pakistan achieved the International Monetary Fund (IMF) targets for net foreign assets and net domestic assets to get tranche of $847 million.

Analysts said that the IMF intimation of economic recovery coupled with rise in international equity markets, foreign interest in the market and exchange rate stability were the reasons for the market’s recovery.

The Karachi Stock Exchange (KSE) 100-share index gained 259.19 points or 3.74 percent to close at 7,191.09 points as compared to 6,931.90 points traded in the previous session.

The KSE 30-share index surged 337.91 points and closed at 7,803.16 points as compared with 7,465.25 points of the previous session. The KMI 30 index also increased by 433.32 points to close at 10,195.57 points as against 9,762.25 points of the previous session.

The market turnover went up by 40.36 percent and traded 290.94 million shares as compared to previous session’s 207.28 million shares. The overall market capitalisation went up by 3.98 percent and closed at Rs 2.164 trillion as compared with Rs 2.081 trillion traded in the previous session. Out of total 375 companies, 260 closed in positive zone, 104 in negative, while 11 remained unchanged. The market displayed a mixed behaviour around mid-day mainly due to low turnover in comparison with the sentiment. Low priced front line sector stocks, close end mutual funds and penny stocks took care of the turnover.

Smooth change of hands allowed the main board stocks to stage an aggressive recovery. Stock swapping on the other hand did not allow the entire sectors to perform at the same pace, but the sentiment due to renewed buying stayed positive. By the day end of the trading session almost all the main board stocks were on their upper circuits.

Aggressive stance of the government towards oil and gas exploration, marketing and refining, endorsed in the press conference by the minister concerned refueled the market men. Response to the conference was quite evident by the gains registered towards the end and leading from the front were the beneficiaries of the new aggressive policy.

Brokers said expectations of Pakistan’s sovereign debt rating improvement from international rating agencies with economic stability and $30 million package presentation to Friends of Pakistan invited new hopes for both retail and institutional investors.

The KSE 100 index opened in the green zone with a gain of 52.71 points and at the end of the day closed at 7,191.09 points with a gain of 259.19 points.

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