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Decline in inflation pushes Karachi stocks 45 points up


KARACHI: The Karachi stock market witnessed a bullish trading session on Thursday due to increasing foreign remittances and declining trend in inflationary numbers, which propelled investors to take positions.

The Karachi Stock Exchange (KSE) 100-share index gained 44.71 points or 0.63 percent to close at 7,091.96 points as compared to 7,047.25 points of the previous trading session. The KSE 30-share index increased by 75.29 points and closed at 7,564.36 points as compared with 7,489.07 points. The KMI 30 index surged 10.70 points to close at 10,466.04 points as against 10,455.34 points.

“It was another dull day ahead of the federal budget,” said analyst at Topline Sec Mohammad Sohail. “Due to slowing down of inflation, interest in banking and cement stocks was observed.” In case there are no direct taxes on share trading, market is likely to post a small rally after budget, he added.

The market turnover went down by 19.11 percent and traded 114.03 million shares as compared to previous session’s 140.97 million shares. The overall market capitalisation went up by 0.57 percent to close at Rs 2.100 trillion as compared to Rs 2.088 trillion. Out of total 311 companies, 151 closed in positive zone, 142 in negative, while 18 remained unchanged.

“Rise in foreign remittances and declining trend in inflationary numbers supported the economic end for the local investors,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Increasing oil prices although may give a tough time to the economic plan if the trend continues.”

The rising trend has failed to get immediate response from the local bourses, wherein the ready board leverage is being missed badly, as the incoming float in the sector stocks that was added with the news of foreign buying in the sector stocks a day earlier, forced the likely participants of the sector stocks to take a cautious and conservative stance.

Buying spree was witnessed in the banking sector that has stayed under pressure recently mainly due to foreign selling in the overvalued stocks, while despite having high chances of being hit by additional tax in the upcoming budget (mainly to reach the revenue target) cement sector staged a decent rally, low turnover failed to have an impact.

DGK Cement was the volume leader in the share market with 12.72 million shares as it closed at Rs 27.77 after opening at Rs 26.48 making a financial gain of Rs 1.29. MCB Bank Ltd traded 10.98 million shares as it closed at Rs 151.00 from its opening at Rs 143.97 gaining Rs 7.33. Jah Siddi and Co traded 10.56 million shares as it closed at Rs 25.04 as against opening at Rs 24.60 gaining 44 paisas.

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