KARACHI: March of the bulls to Northville achieved another milestone as KSE-100 index hit the highest intraday level of 11,676 since the setting of floor in August 2008.
The KSE-100 index closed at 11,620.15 after gaining 51.06 points, while the KSE-30 index closed at 11,184.53 after gaining 29.90 points. The all share index closed at 8,118.28 after gaining 39.53 points. Total volumes stood at 137,075,873 and total value stood at 4,356,133,280. A total of 252 scrips advanced, 117 declined and 18 remain unchanged out of total 387 scrips.
The benchmark index gained 1.87 percent week on week against 2.3 percent during the preceding week. Despite correction in heavy oil and gas sector scrips, advancements in bellwether banking sector scrips including HBL, NBP and BoP supported the overall gains at the local bourse. Healthy investor participation was also witnessed with 233 million shares, the highest since April, 2010.
After the minor correction in the wee hours, KSE-100 index closed at 11,620, up 51 points, as capitalisation expanded by 0.44 percent. Foreign interest and up tick in commodity prices and resilience of local corporate have ascertained dominance of bulls.
Although high priced stocks did witness off-loading on strength, rumors of a financial restructuring of local financial groups continued to provide trading opportunities in the group stocks of Dewan, along with various low priced and penny stocks. Volumetric dip however kept the day traders active in the stocks, mainly for short term punt.
Swapping of sector and stocks in main board stocks was quite prominent wherein stocks offering consistent dividend yields and having potential of reporting growth in upcoming financial results, despite gloomy economic (declining dollar reserves, rising inflation and international oil prices) and financial (high government borrowings and high circular debt) horizon, invited buying interest by both the corporate and high net worth participants.
The stocks likely to feel the heat of high interest rate environment that might impact profitability besides curtailing payout capacity faced off-loading by the market participants, while stocks inviting support by the financial groups invited accumulation for short term trades on intra-day dips, thus keeping the activity alive through out the session.
Positive vibes from the offshore road show, volumetric contribution by the local financial groups and holding companies will continue to keep the local participants active in the arena.
Economic, financial and political matters might, however, keep the horizon restricted, and the absence of the mentioned ingredients may force the bench mark to re-check the levels.
Hasnain Asghar Ali, a market expert, said the stocks having capacity of undergoing fundamental change through financial restructuring or strategic sell out can be held for comparatively longer period, subject to authentic update.
