KARACHI – Local participants smoothly crawled in for accumulating front line growth and dividend yielding stocks primarily due to a substantial reduction in political temperatures, while launch of the Margin Trading System (MTS) from next week did force sellers, mainly in high priced stocks, on the back-foot.
This propelled renewed buyers to move a step forward for building new positions, thus allowing the benchmark attain triple digit gains in early trade. The KSE-100 index closed at 12128.15 points following a gain of 188.14 points, while total volume and total value stood at 71,112,799 and 5,416,064,250 respectively. The KSE-30 index accumulated 248.93 points to close at 11890.12 levels, while the all Share index closed at 8420.01 levels marked by a gain of 124.48 points.
Hefty buying in Engro from local and off-shore circuits allowed the stock to lead gains and traded value, besides providing widespread trading opportunities to the market men, thus keeping activity alive despite an overall dull session. Out of 655 scrips, 198 scrips advanced, 87 declined and 370 remain unchanged.
Midday stagnation due to absence of follow-up support and clipped activity by the resident participants, wherein divide amongst locals is still quite prominent, dampened market activity. Gains, however, remained intact due to presence of corporate support on dips, while day traders were seen making an exit, mainly due to an absence of roll-over mechanism.
Economic, financial and matters linked to diplomatic relations with US restricted participation and improvement on the mentioned fronts. Healthy response to the improved version of CFS will indeed allow the local bourse to trade with improved numbers.
Caution, however, continues mainly in high priced stocks while trading and placement in selective stocks can be looked for on dips, said Hasnain Asghar Ali at Aziz Fidahusein. He added that strength can be capitalised in high priced stocks, along with those highly dependant on healthy economic and financial environment.
