Statements from the US ensuring continued support to Pakistan provided a much required confidence booster to investors as the stock market came back strongly and gained 235 with volume of approximately 58 million shares. Low volume targeted strength in main board stocks led by OGDC, the local bourse staged triple digit gains, although turnover failed to join the pace thus making the recovery unimpressive, as strength did restrict the likely sell-off mainly in the high priced stocks.
Only 16 scrips were traded with a volume of a million shares. The index movers and shakers included OGDC with point’s contribution of 52 percent towards total gains. International relations between US and Pakistan were apparently improved after statements issued by US officials as a consequence of the ongoing blame game were put to rest. With less than 25 days to go before the budget, investors are cautiously eyeing at the market. With rumors of increased tax rates for banking companies and the corporate sector, earning and fundamental fair values are likely to face an impact; hence the investors are discounting this phenomenon.
The KSE-100 index closed at 11,906.69 with a gain of 234.64 points and total volume stood at 39,441,333 along with the total value of 2,012,923,469. KSE-30 index gained 213.22 points to close at 11,546.73 and All Share index closed at 8,293.58 after gaining 155.87 points. A total of 179 scrips advanced, 80 declined and 97 remain unchanged out of a total of 356 scrips traded. Selective accumulation did trigger various singled-out snap rallies, thus allowing opportunities of readily evident, low volumes however failed to inspire follow-up support and lead to an extended spell of stagnation.
Since positive signals from the budget are unlikely to be heard with economic and financial issues persisting, the market men sustained the cautious stance and awaited dips in main board stocks offering consistent yield and unlikely to get hit by various threats in the arena, said Hasnain Asghar Ali at Aziz Fidahusein.
