Market reacts positively to SBP decision


The local bourse finally got something to cheer about as SBP changed its stance to a more aggressive one (despite variables that led to consistent rise during previous reviews at status-quo). This allowed the benchmark KSE-100 to register triple digit gains in early trade. Absence of follow-up, renewed selling in strength in frontline stocks, and fast losing value of local currency as a direct reaction to decline in local interest rate forced the syndicate to revert to the much practiced strategy of low volume strength. In index heavy weight OGDC and NIBR (trading at Rs0.01) stayed the volume leader along with other penny stocks.
The KSE 100 index closed at 12,253.39 levels with the gain of 63.02 points and total volume stood at 28,693,590 along with the total value of 2,137,651,949. KSE 30 index gained 50.85 points to close at 11,611.08 levels and All Share index closed at 8490.38 levels after gaining 40.51 points. Total 108 scrips advanced 120 declined and 94 remained unchanged out of total 322 scrips traded.
With various economic and financial woes persisting, volatile law & order, and high temperatures in political arena sustaining, the gains at local equities failed to tempt the sideliners. Wherein the uncertainty, as to the recent decline in monetary rate decline stayed in limelight (whether the recent decline is a one off event or is it a trend likely to continue in next policy reviews) disallowed an aggressive follow-up to mainly a technical recovery. Hasnain Asghar Ali at AzizFidahusein said caution stays the call with measurable discounts in consistent stocks (that are free of various threats) likely to continue to hit profitability and dividend paying capacity of various front line stocks for accumulation (for both short and long term), while low volume strength (or hand shift on strength) should be taken as an opportunity to sell.