Expectations over development of coalition parties kept the Karachi stock market on an upbeat note on Wednesday as retail and institutional investors opted for buying activities.
The Karachi Stock Exchange (KSE) 100-share index gained 117.04 points or 1.65 percent to close at 7,198.87 points as compared to 7,081.83 points of the previous session. The KSE 30-share index increased by 129.60 points and closed at 7,647.69 points as compared with 7,518.09 points. The KMI 30 index also surged 139.39 points to close at 10,156.91 points as against 10,017.52 points.
Analysts said hectic buying activities were witnessed in the market during the trading session as PML-N was considering joining the federal cabinet, which had a positive impact on the market. The market turnover increased by 46.53 percent and traded 142.02 million shares as compared to previous session’s 96.92 million shares. The overall market capitalisation rose 1.61 percent and closed at Rs 2.143 trillion from its opening at Rs 2.109 trillion. Out of total 344 companies, 230 closed in positive zone, 99 in negative, while 15 remained unchanged.
Analysts said news of revival of consultative group on capital market fuelled the bulls and as for the local bourse to perform at its potential re-introduction of CFS and removal of ban from ‘In-house’ badla (private credit) are the basic ingredients besides introduction of locally acceptable various hedging tools. Although these objectives have not been officially announced, for the market to perform at its potential sensitive issues should be addressed timely. Main board stocks allowed the bulls to beat the drum, accumulation during the wee hours of trade allowed the air pocket opening a follow-up support as the main board stocks of oil and gas and banking did the magic and the index soon registered triple digit gains.
With the support of corporate and retail participants the index sustained the gains allowing a wider range of fundamentally strong stocks to make it to the buyers’ choice. Unconfirmed news that India might remove import duty introduced on cement imports allowed the relevant sector to perform well joining the rally and painting a healthy picture of the market. Absence of leverage players was certainly felt, only this time difference between buyer and seller allowed the stocks to recover swiftly, as the absence of seller at intervals forced the buyer to increase prices in order to accumulate desired quantity of shares.
The KSE 100 index opened in the green zone with a gain of 64.19 points and at the end of the day closed at 7,198.86 points with a gain of 117.03 points.
The Karachi Stock Exchange (KSE) 100-share index gained 117.04 points or 1.65 percent to close at 7,198.87 points as compared to 7,081.83 points of the previous session. The KSE 30-share index increased by 129.60 points and closed at 7,647.69 points as compared with 7,518.09 points. The KMI 30 index also surged 139.39 points to close at 10,156.91 points as against 10,017.52 points.
Analysts said hectic buying activities were witnessed in the market during the trading session as PML-N was considering joining the federal cabinet, which had a positive impact on the market. The market turnover increased by 46.53 percent and traded 142.02 million shares as compared to previous session’s 96.92 million shares. The overall market capitalisation rose 1.61 percent and closed at Rs 2.143 trillion from its opening at Rs 2.109 trillion. Out of total 344 companies, 230 closed in positive zone, 99 in negative, while 15 remained unchanged.
Analysts said news of revival of consultative group on capital market fuelled the bulls and as for the local bourse to perform at its potential re-introduction of CFS and removal of ban from ‘In-house’ badla (private credit) are the basic ingredients besides introduction of locally acceptable various hedging tools. Although these objectives have not been officially announced, for the market to perform at its potential sensitive issues should be addressed timely. Main board stocks allowed the bulls to beat the drum, accumulation during the wee hours of trade allowed the air pocket opening a follow-up support as the main board stocks of oil and gas and banking did the magic and the index soon registered triple digit gains.
With the support of corporate and retail participants the index sustained the gains allowing a wider range of fundamentally strong stocks to make it to the buyers’ choice. Unconfirmed news that India might remove import duty introduced on cement imports allowed the relevant sector to perform well joining the rally and painting a healthy picture of the market. Absence of leverage players was certainly felt, only this time difference between buyer and seller allowed the stocks to recover swiftly, as the absence of seller at intervals forced the buyer to increase prices in order to accumulate desired quantity of shares.
The KSE 100 index opened in the green zone with a gain of 64.19 points and at the end of the day closed at 7,198.86 points with a gain of 117.03 points.
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