KARACHI
A record increase in the foreign exchange reserves and birth of a soft corner over law and order situation jacked up the Karachi Stock Exchange 100-Index by 93.74 points on Friday as it closed at 10,652 points. The volume of trading also climbed to 114.67 million shares, as investors traded shares worth Rs 5.11 billion on Friday.
High trading activity kept the volume generating machine busy as the benchmark index hit a six month high, primarily associated with an influx by local, corporate and retail participants, along with whispers of inflow from offshore channels.
Analysts said that bulls galloped off to gather a massive intra-day gain of 150.5 points. News of a record $17 billion in forex reserves and settlement of law and order situation in the financial centre allowed the benchmark index to uninhibited stride and reach levels of 10,709 points, however, profit booking towards the end of the session curtailed gains to 0.89 percent.
The week’s bull-run has seemingly been buttressed by local investor community showing a renewed interest in the equity market in anticipation of sturdy corporate results. Volume leader’s board was flooded in jovial green reflecting buying activity across the board, with only the top volume generator, NPL standing at a loss of Rs 0.23. Banking sector is still assumed as a preferred investment venue while NBP received the greatest attention amongst its peers, gaining by a healthy 3.34 percent.
The day saw HUBC, KAPCO and FFC close in positive zone, while HUBC also ended the day with a name on the volume leader board. Among the oil and gas scrips, PSO witnessed recovery while refineries lacked investors. Exposure in equity market has a potential to be quite rewarding in the upcoming week as banking, oil and chemical sector companies unravel their quarterly results, paving way for further momentum.
Anticipation of success in the ongoing strategic dialogue in the US, mainly on the release of previously committed CSF amount, was indeed a triggering factor for the bulls, while presence of renewed buyers from the local, corporate and retail corridors kept the main board stocks in the driver’s seat. Textile sector led the show and ended as volume leaders with support of respective financial groups, thus inviting renewed buying interest from various market participants.
Absence of follow-up support initially, in main board stocks did restrict the upside in the stock values, however index contribution through early strength in main board stocks allowed the positive momentum to continue, thereby pushing the likely sellers on the back-foot.
