KARACHI – The local bourse sustained momentum amid good foreign inflow. Investors flocked towards stocks offering high dividend yields, as the corporate result season is underway. The KSE 100 index closed at 12681.94 points marked by a gain of 148.40 points.
Volume of the equity market, standing at 317 million shares, was seen after almost an eight month gap. Stock market seemed to be in an unstoppable mood as the index continued to travel northward despite mixed news. The benchmark exhibited u-shape movement during the day, but the bulls looked furious.
The high volumes depicted revival of investor confidence. ANL, with a turnover of 35 million shares, topped in terms of volume and closed at its upper limit amid rumours of debt restructuring. FFC and FFBL also remained in the limelight on the back of better-than-expected corporate results.
Fertiliser stocks were in full swing as FFC touched a high of Rs 151 per share; however, it closed at a lower level. The E and P sector, along with oil marketing companies, were in action backed by oil price hike in the international market.
Despite a highly tense law and order situation, the local bourse managed an extension in the bull-run, backed by high and quality turnover on fresh inflow by the local participants, mainly from the corporate corridors. Support from local financial groups in their respective companies allowed an across the board positive activity, thus offering various trading opportunities. Inflated levels, wherein majority of the main board stocks have attained fair values due to high speculative activity, did invite an across the board technical adjustment led by corporate off-loading. Low volume influx, however, disallowed the benchmark from reflecting the low volume price erosion in majority of the stocks.
Currently, local equity markets are at substantial discounts from the regional and international exchanges, the leverage mania has thus allowed the market participants to ignore tough economic and financial fronts. Renewed buying is plausible as some main board stocks are yet to reach the finish line. An update on leverage and unveiling of government’s plan to address economic and financial issues will dominate highly volatile sessions in the ongoing week, stated Hasnain Asghar Ali at Aziz FidaHusein.
