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Foreign interest, hopes of discount rate cut boost KSE by 106 points

KARACHI: The Karachi stock market witnessed a bullish trading session on Thursday on account of foreign interest in oil and gas sector and increase in expectations of a discount rate cut in the monetary policy over reduction in T-bill yields by 31 basis points.

The Karachi Stock Exchange (KSE) 100-share index gained 106.43 points or 1.16 percent to close at 9,251.19 points as compared to the previous session’s 9,144.76 points. The KSE 30-share index closed at 9,774.87 points with a rise of 130.34 points. The KMI 30 index closed at 13,505.38 points with a surge of 195.94 points.

Analysts said the market opened in the positive zone and this trend remained throughout the trading session despite deadly blast in Peshawar, which claimed scores of precious lives. Despite positive closure of the market the daily turnover remained dismal

The market turnover went down by 37.57 percent and traded 108.20 million shares as compared with previous session’s 161.93 million shares. The overall market capitalisation went up by 1.17 percent and traded Rs 2.671 as against the previous session’s Rs 2.640 trillion. Out of total 373 companies, 212 closed in the positive zone, 141 in negative and 20 remained unchanged.

“Despite positive closing, volumes remained on the lower side,” said analyst at Topline Sec Furqan Punjani. “However, handsome foreign buying during the previous three sessions and expected decline in discount rate continued to be the positive triggers for the market.”

Furthermore encouraging oil and gas production numbers from Manzalai field triggered E&P stocks specially POL, he added. “Rise in international oil prices near to $80 and expectations of early approval of leverage products by the Securities and Exchange Commission of Pakistan played a catalyst role in the positive activity,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

“Emergence of textile stocks in the volume leaders have been offering trading opportunities to the market allowing prospects for short and medium-term activities,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali.

The KSE 100-share index opened in the green zone with a gain of 47.95 points and at the end of the day closed at 9251.19 points with an increase of 106.43 points. Nishat Mills was the volume leader in share market with 9.51 million shares as it closed at Rs 67.04 after opening at Rs 66.46, gaining 58 paisas. PTCL traded 7.48 million shares as it closed at Rs 18.02 from its opening at Rs 17.83, losing 19 paisas. staff report

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