Skip to main content

Moody’s rating change pushes KSE 100-share index up by 62 points


The Karachi stock market witnessed a bullish trading session Tuesday as Moody’s investor service revised the ratings of NBP, HBL, UBL, MCB and Pakistan’s sovereign debt to stable, which boosted investor confidence and they went for buying activities.

The Karachi Stock Exchange (KSE) 100-share index gained 62.55 points or 0.79 percent to close at 7,995.10 points as compared to the previous session’s 7,932.55 points. The KSE 30-share index closed at 8,474.25 points with an increase of 65.32 points. The KMI 30 index closed at 11,873.31 points with a surge of 63.07 points.

Analysts said the market remained buoyant since the start of the trading activities the trend continued till the closing. Cement and bank stocks remained in the limelight during the session.

The market turnover went down by 22.55 percent and traded 106.86 million shares as compared with previous session’s 137.99 million shares. The overall market capitalisation was up by 0.68 percent to close at Rs 2.354 trillion as against Rs 2.338 trillion. Out of total 385 companies, 166 closed in the positive zone, 193 in negative while 26 remained unchanged.

“With limited events in sight and smooth phasing out of the result season the market performed in a narrow range,” said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. “The index did manage a triple digit gain, that was generally attained by gains in MCB and OGDC as whispers suggested foreign buying in both the index heavy weights, but the gains failed to inspire an across-the-board activity as reflected by the low turnover.”

Offloading by the local investors disallowed the 100-share index to sustain triple digit gains. Dips in the main board stocks mainly those yet to announce June end results and those (few in number), which outperformed market expectations, invited cautious accumulation by the local investors who opted for squaring up their positions, he added.

Stocks trading at higher multiples have faced local selling that is being absorbed by foreign participants (due to unknown reasons) disallowing any major impact on 100-share index, he said and added that while tug of war continued in leading cement stocks due to CCP phobia and unconfirmed news of decline in local cement rates, dips however continued to invite renewed buying interest.

“Rise in local furnace oil prices and foreign buying played a key role in rejuvenating spirits of the investors,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. The KSE 100-share index opened in green zone with a gain of 15.49 points and at the end of the day closed at 7,995.10 points with a gain of 62.55 points.

Comments

Popular posts from this blog

THK Associates (Private) Limited: Shares Registrar

THK Associates (Pvt) Limited was formed in 1989. The company is engaged in providing specialized services relating to the corporate sector and in particular acts as share transfer agent for a number of companies. THK Associates (Pvt) Limited is one of the leading service provider of Share Registrar, Transfer Agent, Balloters for IPO’s and Share Accounting Services and is managed and run by a set of professionals having indepth knowledge and expertise of organizing and managing diversified corporate activities including depository related Share Registrar activities. THK Associates (Pvt) Limited, previously an associate of KPMG Taseer Hadi & Co., has been restructured in terms of requirements of Clause XL of the Code of Corporate Governance and the shareholding of THK partners has been divested in the year 2004. Mr. Yunus Dawood, Chief Executive of DYL Motorcycle Limited, a shareholder and Director was appointed as Chairman of the Company in 2008. Mr. Javed Iqbal, former Chairman an

SECP initiates 86 show-cause proceedings against compamies

The SECP’s Enforcement Department— while enforcing compliance of corporate and allied laws— initiated 86 show-cause proceedings and concluded 54 proceedings against chief executives, directors and auditors of companies in February and March. While facilitating companies to strengthen their capital base, the department allowed three listed companies to issue shares by way of otherwise than right at a discount and at par.  In order to strengthen the existing regime of Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with the ICAP for the external assurances of the CSR reports.  CSR reports assist organizations in understanding and communicating their vision of combining a company’s profitability with social responsibility and environmental care. Both the SECP and the ICAP have reaffirmed their commitment to developing a framework for external assurance in accordance with prominent international assurance standards, and within a mutually agreed time f

Dewan Motors launch electric cars in a glorious ceremony

  By Abdul Qadir Qureshi   (Pakistan News and Features Services) Way is paved for assembling and later gradual manufacturing of electric cars and bikes in Pakistan with the launching of electric cars by the Dewan Motors Limited (DML), a reputed name in the automobile sector, at a glorious launch ceremony at the Convention Centre of DHA Golf Club on June 4.  The Chairman of Senate, Syed Yusuf Raza Gilani, also a former Prime Minister, was the guest of honour as hundreds of participants from various walks of life celebrated another remarkable achievement by Pakistan.  Speaking on the occasion, he acknowledged and applauded the ground breaking initiative undertaken by the Yousuf Dewan Companies (YDC) in the automotive sector.  “The establishment of a state-of-the-art vehicle assembly plant equipped with cutting-edge robotics technology, signifies the strength and capabilities of the company,” he remarked.  He was confident that, based on its reputation and track record, the YDC will not o