KARACHI: The Karachi Stock Exchange (KSE) maintained its momentum on Monday as the KSE-100 Index gained 53 points.
The bullish momentum has built upon the basic principle that slow and steady wins the race and this seems to be the right path adopted by the market. The strong morale in the KSE is primarily build upon hopes resting on the expectation of positive results for the quarter. The index remained firmly entrenched in the green zone throughout the day and made an intra-day high of 10,537, it faltered later, restricting the upward journey to 10,484 points.
The KSE-100 Index closed at 10484.39, gaining 52.55 points, while the KSE-30 Index closed at 10084.74 with a loss of 10.06 points. The all-shares index closed at 7335.60, with a gain of 34.15 points. Market capitalisation stood at 2,880,022 million, and the ready market volume was 103.15 million against the previous 112.61 million. Total trades stood at 58,334, and out of 405 scrips, 209 advanced, 170 declined and 26 remain unchanged. The stock of companies belonging to the Nishat Group including DGKC, NCL and NML were among the strongest performers of the day, generating ample volume.
The ABL’s 3rd Quarter results were better in contrast with the analysts’ expectations, keeping its stocks in the green zone. The NBP finally came into the limelight and crossed over the Rs 65 mark, while the rest of the major banking sector stocks remained muted. The OGDC dominated the oil stocks with over a rupee gain, while the POL and the PPL moved in a positive direction. The PSO moved against the wind and closed in the red zone. HUBCO, KAPCO and FCC remained muted. The volumes over the last couple of days seem to move in a wavy pattern, and investors believe that foreign inflow may have influenced the volume swing.
The heated up political arena over the weekend was unable to make an impression on the investors’ mind frame. Stocks of almost all sectors witnessed renewed buying interest, presumably initiated and led by the local financial groups, carrying the crown of being the most active participants. However the gloomy economic, financial, political and law and order horizon did restrict locals from actively participating in the ongoing traders rally, as the majority of the regular players avoided taking long-term positions.
“Active participation by the local financial groups from both local as well as off-shore channels will continue to ensure short term trading opportunities, that can be duly capitalised,” said Hasnain Asghar, an analyst at the Aziz Fida Hussain and Company. “Availability of flexible leverage is likely to allow local equities substantive increase in values, thereby keeping the assumptions of increase in turnover and market depth alive, subject to timely introduction without further amendments,” he added.
