The Karachi stock market faced intense buying on the last trading day of the week Friday due to foreign investment in oil and bank sectors.
Buying was also supported by local investment in blue chips like bank, oil and cement sectors on account of good result announcements. The main trigger for the market was Standard and Poor’s (S&P) revision of Pakistan’s credit ratings to ‘B-’, which attracted interest from foreigners who remained the net buyers of shares worth $23.8 million.
The Karachi Stock Exchange (KSE) 100-share index increased by 226.06 points or 2.72 percent to close at 8,541.22 points as compared to previous session’s 8,315.16 points. The KSE 30-share index closed at 9,187.48 points with a gain of 255.64 points. The KMI 30 index closed at 12,855.50 points with a surge of 304.45 points. Analysts said that despite negative news in terms of failure to reach an agreement on margin financing and surge in all T-bills yields, an overall positive mood was witnessed at the market.
The market turnover went up by 72.57 percent and traded 201.69 million shares as compared with previous session’s 116.87 million shares. The overall market capitalisation was up by 2.5 percent to close at Rs 2.501 trillion as against Rs 2.440 trillion. Out of total 372 companies, 223 closed in the positive zone, 124 in negative and 25 remained unchanged. “Reduction in discount of Pakistani bonds listed in the international market, provided yet another trigger to the market, wherein the sentiment was re-established by the cheapest stock of oil and gas exploration sector,” said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. “Buying by both local and foreign participants continued in PPL, which extending the momentum of other stocks of the sector.”
While expectations of materialisation of government’s commitment to address the circular debt issue kept the investors active in the likely beneficiaries, accumulation in MCB led the sentiment in other sector stocks, he said and added that some witnessed re-gearing after the announcement of their six-month financials while the leading stock of the sector, NBP likely to announce its six months results failed to stay at par with MCB on gains.
Having a heavy weight in the index, MCB and other sector stocks contributed substantially to the index. Healthy profits announced by yet another low priced stock Pakistan PTA allowed substantial rise in the turnover that stayed comparatively low in proportion to the prevailing sentiment. The stock contributed 35 percent to the total turnover.
Buying was also supported by local investment in blue chips like bank, oil and cement sectors on account of good result announcements. The main trigger for the market was Standard and Poor’s (S&P) revision of Pakistan’s credit ratings to ‘B-’, which attracted interest from foreigners who remained the net buyers of shares worth $23.8 million.
The Karachi Stock Exchange (KSE) 100-share index increased by 226.06 points or 2.72 percent to close at 8,541.22 points as compared to previous session’s 8,315.16 points. The KSE 30-share index closed at 9,187.48 points with a gain of 255.64 points. The KMI 30 index closed at 12,855.50 points with a surge of 304.45 points. Analysts said that despite negative news in terms of failure to reach an agreement on margin financing and surge in all T-bills yields, an overall positive mood was witnessed at the market.
The market turnover went up by 72.57 percent and traded 201.69 million shares as compared with previous session’s 116.87 million shares. The overall market capitalisation was up by 2.5 percent to close at Rs 2.501 trillion as against Rs 2.440 trillion. Out of total 372 companies, 223 closed in the positive zone, 124 in negative and 25 remained unchanged. “Reduction in discount of Pakistani bonds listed in the international market, provided yet another trigger to the market, wherein the sentiment was re-established by the cheapest stock of oil and gas exploration sector,” said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. “Buying by both local and foreign participants continued in PPL, which extending the momentum of other stocks of the sector.”
While expectations of materialisation of government’s commitment to address the circular debt issue kept the investors active in the likely beneficiaries, accumulation in MCB led the sentiment in other sector stocks, he said and added that some witnessed re-gearing after the announcement of their six-month financials while the leading stock of the sector, NBP likely to announce its six months results failed to stay at par with MCB on gains.
Having a heavy weight in the index, MCB and other sector stocks contributed substantially to the index. Healthy profits announced by yet another low priced stock Pakistan PTA allowed substantial rise in the turnover that stayed comparatively low in proportion to the prevailing sentiment. The stock contributed 35 percent to the total turnover.
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