KARACHI – Though the market got to the 12,000 mark, market experts believed that the assassination of the Punjab governor will engender instability in the political scenario and entail caution on the market as a result.
After yesterday’s bearish spell the stock market was encouraged by reports that PML-N is likely to support the current government in its bid to remain in power. The KSE 100 index closed at 12110.26 with a gain of 260.80 points, while total volume stood at 184,187,350 along with a total value of 8,871,4469.
Positive activity was evident from opening hour as high dividend yielding stocks led the charge, particularly in the fertiliser sector, while the continuing rise in international oil prices allowed the Oil and Gas exploration scrips to join the rally.
Subsequently, this was followed up by banking sector stocks to which investors were attracted by the year-end payout along with various group specific stocks, thus allowing the index to exude strength entailing triple digit gains attained by an early hour.
Although high priced stocks did face off-loading by local participants across the board, as well as short covering; the gains thoroughly backed by turnover allowed various short term trading opportunities to daring investors. Top two volume leaders LOTPTA and KESC contributed almost 40 percent of the total turnover that stood at 200 million.
Hasnain Asghar Ali at Aziz Fidahusein said, ‘availability of high dividend yielding stocks at decent discounts were pounced upon by both local and offshore participants, while the trend in international oil prices attracted funds in oil stocks.’
Bilal Asif at HMFS said, ‘we believe it will be irrelevant to discuss individual stocks, because most of the stocks are back at the same price level.’ 299 scrips advanced, 86 declined and 19 were unchanged out of a total of 404 scrips.
Since persistent issues on economic and financial fronts remain, the outlook remains bleak; experts view the reduction in political infighting and loud whispers of accumulation through off-shore accounts.
Foreign fund managers allowed market men both from the retail and corporate sectors to take full advantage of huge discounts, initially through fresh buying and then through sector and stocks swapping in order to take maximum advantage of the discounts, which allowed the index to attain and sustain the 12000 mark.
