KARACHI – The Karachi Stock Exchange (KSE) exhibited bullish activity as investors’ expected an early introduction of the leverage product. The KSE-100 index accumulated 56.29 points or 0.46 percent to close at 12,415.35 points. The benchmark hit intraday high and low of 12,442.55 and 12,344.06 respectively. Volume at the ready-counter stood at 102,520,886 shares, while the value stood at Rs 4.715 trillion.
The number of gainers and losers for the day were 204 and 149 respectively. Ahsan Mehanti of Arif Habib Investments Limited felt that the bullish trend at the country’s largest bourse was triggered by announcement of Securities and Exchange Commission of Pakistan chairman’s visit to KSE on Monday. The chairman would review fate of the long-awaited Margin Trading System (MTS).
Higher global commodity prices and continued foreign interest in the blue chip oil and fertiliser sectors were other factors playing a catalyst’s role in Friday’s positive close, the analyst said. Hasnain Asghar Ali of Aziz Fidahusein and Company said that cautious accumulation in the main board stocks allowed the benchmark to continue the gaining spree, while wider market participants awaited confirmation of the MTS introduction.
“The turnover failed to match gains following an initial setback. However, activity by holding companies, along with resident participants, did provide various trading opportunities to the market-men,” he said. He added that low volumes, however, stayed the alarming factor. Main board oil and gas exploration, fertiliser and banking stocks led gains, while LOTPTA continued to stay the main volume provider.
However, range-bound activity and stagnation continued to disallow aggressive follow-up support. The leverage waves kept corporate participants away from the selling window, thereby allowing high priced stocks to register substantial gains.
The analyst stated that upcoming banking results were likely to sustain post result sell-off if expectations of over optimistic earnings and high stocks dividends were not met.
“Caution, therefore, stays the call in the frontline stocks of the sector, while official visit of SECP commissioner is likely to provide an updated stance of leverage.” he added.
